US Dollar Index Hovers Near 99.00 as Bearish Momentum Builds Below Key EMA

DXY Holds Near 99.00 as Bearish Signals Strengthen

The US Dollar Index (DXY) is trading near 99.00 on Monday during the Asian session, easing from Friday’s gains. After a rejection at the nine-day Exponential Moving Average (EMA) near 99.16, the index appears to be resuming its bearish trajectory, influenced by technical weakness and broader risk sentiment.

Technical Outlook: Bearish Channel Remains Intact

On the daily chart, DXY remains locked inside a descending channel, and short-term indicators are turning increasingly negative:

• RSI (14-day) remains below 50, confirming weakening momentum.
• Price stays under the 9-day EMA, which acts as short-term resistance.
• The next major support lies at 97.91, a level last seen in March 2022, and touched again in April 2025.

If bearish pressure continues, the lower bound of the falling channel near 97.30 could become the next technical target.

Key Technical Levels to Watch

• Resistance: 99.16 (9-day EMA), 99.65
• Support: 97.91 (swing low), 97.30 (channel base)

The DXY will likely remain vulnerable while trading below its moving averages and without a catalyst to boost sentiment for the greenback.

Macro Drivers: Waiting on Trade Talks and Fed Signals

The recent strength in risk assets and dovish Fed commentary has added pressure on the Dollar. Markets are now looking toward outcomes from the US-China trade talks and incoming Fed commentary, which could influence the Dollar’s near-term direction.

“Unless DXY breaks above 99.65 with strong momentum, bears are in control and may aim for sub-98.00 levels.”

Related Articles on Tredu.com:

• What’s Next for USD Amid Trade Negotiations?
• EUR/USD Eyes Upside as Dollar Softens
• Fed Policy Outlook: Pause or Pivot?

Key Takeaways:

• DXY trades near 99.00, showing signs of renewed weakness.
• RSI below 50 and failure at the EMA suggest bearish bias.
• Focus now shifts to support at 97.91 and 97.30 if pressure intensifies.
• Broader market sentiment and Fed tone will be crucial this week.