US Dollar Index Price Forecast: The bearish vibe prevails below 100.50

• The US Dollar Index softens around 100.35 in Wednesday's early European session. 
• The negative outlook of the index prevails below the key 100-day EMA, with the bearish RSI indicator. 
• The initial support level emerges at 100.25; the first upside barrier is seen at 101.23.

The US Dollar Index (DXY) remains on the defensive near 100.35 during the early European session on Wednesday. The improved risk appetite following the fresh Chinese stimulus plans and rising bets on a jumbo interest rate reduction from the US Federal Reserve (Fed) in November weigh on the DXY. The US New Home Sales data for August will be published later on Wednesday. Traders also await the Fed's Governor Adriana Kugler speech for fresh impetus. 

Technically, the DXY keeps the bearish vibe on the daily chart as the index holds below the key 100-day Exponential Moving Averages (EMA). The downward momentum is supported by the Relative Strength Index (RSI), which stands below the midline near 35.65. This suggests that further downside of DXY looks favorable. 
 
A decisive break below the lower limit of the Bollinger Band at 100.25 could expose the 100.00 psychological mark. Extended losses could see a drop to 99.74, the low of July 13, 2023. The additional downside filter to watch is 99.57, the low of July 18, 2023. 
 
On the bright side, the high of September 23 at 101.23 acts as an immediate resistance level for the US Dollar Index. Further north, the next upside barrier is seen at 101.84, the high of September 12. The round level and the upper boundary of Bollinger Band in the 102.00-102.05 zone appear to be a tough nut to crack for DXY bulls. A break above the mentioned level could see a rally to the 100-day EMA at 102.95. 

US Dollar Index (DXY) Daily Chart