US Dollar Index Struggles Below 99.00 as Bearish Signals Intensify

US Dollar Index Slides Below 99.00 as Bearish Momentum Builds

DXY Struggles to Hold Gains, Hovers Near 99.20 in Asian Session

The US Dollar Index (DXY) is slipping again after briefly recovering more than 0.5% in the previous session, now trading around 99.20 early Wednesday in the Asian market. Despite the rebound attempt, the index remains under short-term technical pressure.

Technical Indicators Signal Weak Momentum

On the daily chart, the DXY is locked inside a downtrend channel pattern, reinforcing the bearish bias. The nine-day Exponential Moving Average (EMA) at 99.38 serves as an immediate resistance barrier.

Moreover, the 14-day Relative Strength Index (RSI) is holding below the neutral 50 mark, supporting the case for continued downside pressure.

Related guide: How to Read RSI and EMA in Forex Trading

Support Levels in Focus: 97.91 and 97.80

The next critical support lies at 97.91, the March 2022 low, which could be tested again if the bearish trend persists. This level aligns with the lower boundary of the current downtrend channel, near 97.80, acting as a potential technical floor for the DXY.

Explore more: What the DXY Tells Us About Global USD Sentiment

Resistance Cap at EMA, Bearish Continuation Likely

If the DXY manages to reclaim 99.38 (nine-day EMA), short-term momentum may stabilize. However, with weak RSI, lower highs, and a consolidated bearish structure, traders remain cautious about any sustainable recovery in the US Dollar.

Suggested Internal Links:

• US Dollar Index Real-Time Chart & Key Levels
• Forex Market Outlook: Dollar vs Majors
• Understanding Support and Resistance in Forex