US Dollar Index (DXY) — Key Drivers and What to Watch

dollar index, USD index, greenback, dollar strength, FX sentiment, yields

US Dollar Index (DXY)

US Dollar Index (DXY) held firm above key support at 98.50 after a close near 98.62. The near-term structure stays constructive while buyers defend 98.50, with 98.80 and 99.20 in focus on strength. A daily close below 98.00 would neutralize the bullish tone.

Fundamentals at a Glance

Sticky inflation expectations and firm US yields continue to underpin the greenback. Divergent growth signals across Europe and Japan keep safe-haven demand in play, helping dips in the US Dollar Index attract buying interest.

Technical Picture

Price action above 98.50 (S1) keeps momentum positive. Acceptance and a daily close above 98.80 (R1) would open the path toward 99.20 (R2). Failure to reclaim 98.80 on rebounds risks a retest of 98.00 (S2).

DXY — Levels & Single Setup

InstrumentCloseSupportsResistancesTrade Idea
DXY98.62S1: 98.50 • S2: 98.00R1: 98.80 • R2: 99.20Buy dips above 98.50 → 98.80 then 99.20 • Invalidate on daily close < 98.00

Outlook

As long as 98.50 holds on a closing basis, the path of least resistance tilts higher. Watch incoming inflation data and Fed communication for confirmation. A break and close below 98.00 would shift risks back to a broader range.

FAQs

How can I use these levels effectively?

Treat them as reference zones for planning entries and exits. Always confirm with live quotes and your timeframe signals before execution.

What invalidates the short-term bullish bias?

A decisive daily close below 98.00 would neutralize the constructive view and argue for range consolidation.

Do these levels change intraday?

Levels are reviewed against the latest 12-hour price action; update with live data on your platform when conditions shift.

Sources

Note: Confirm live quotes on your platform before trading. Levels: Close 98.62 • S1 98.50 • S2 98.00 • R1 98.80 • R2 99.20.

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