US Dollar Index Price Forecast: Hovers near descending channel’s lower boundary at 100.50

• The US Dollar Index may continue to weaken amid a sustained bearish trend, currently testing the descending channel’s lower boundary.
• The 14-day RSI remains below 30, indicating the possibility of an imminent corrective rebound.
• Immediate support is located at the psychological level of 100.00, followed by 99.76 — the lowest level recorded since April 2022.

The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against a basket of six major currencies, continues its decline for the second consecutive session, hovering around 100.40 during Friday’s Asian trading hours. The technical analysis of the daily chart suggests a sustained bearish trend, with the index testing the lower boundary of a prevailing descending channel.

Despite the downward pressure, the 14-day Relative Strength Index (RSI) remains below 30, signaling the potential for an imminent upward correction. Furthermore, the DXY is trading well below its nine-day Exponential Moving Average (EMA), indicating weak short-term momentum.

On the downside, immediate support is seen at the psychological level of 100.00, followed by 99.76 — the lowest level since April 2022. Additional support lies near the 99.00 mark.

To the upside, a move toward the nine-day EMA at 102.34 could be on the cards. A decisive break above this level may enhance short-term bullish momentum and pave the way for a test of the key resistance zone near the upper boundary of the descending channel at the monthly high of 104.37, followed by 104.59.

US Dollar Index: Daily Chart