The US Dollar Index (DXY), which measures the dollar’s value against a basket of six major currencies, edged lower to around 98.55 during early European trading on Wednesday. The decline comes as investors remain cautious ahead of the Federal Reserve’s interest rate decision and amid ongoing tensions between Israel and Iran.
Technical indicators point to continued weakness in the index. On the daily chart, DXY stays below the 100-day Exponential Moving Average (EMA), reinforcing a bearish trend. The 14-day Relative Strength Index (RSI) is also below the neutral 50 mark, hovering near 43.80, suggesting further downside pressure.
The first key support zone lies between 98.00 and 97.90, aligning with a psychological level and the lower boundary of the Bollinger Band. If the index falls below this range, it could drop to 97.61—the low from June 12. A deeper slide could take it down to 96.55, last seen on February 25, 2022.
