US Dollar Index Price Forecast: Moves below 104.50 toward nine-day EMA support

• The US Dollar Index may test immediate support at the nine-day EMA of 104.17.
• The 14-day RSI remains below 50, reinforcing the bearish bias.
• Initial resistance is seen at the 50-day EMA at 105.62.

The US Dollar Index (DXY), which measures the US Dollar (USD) against six major currencies, has given up its recent gains from the previous session, hovering near 104.30 during Thursday's Asian trading hours. The technical analysis of the daily chart indicates a persistent bearish bias, with the index trending lower within a descending channel.

Additionally, the 14-day Relative Strength Index (RSI) remains below 50, reinforcing the bearish outlook. However, the US Dollar Index is holding above the nine-day Exponential Moving Average (EMA), suggesting an improvement in short-term price momentum.

On the downside, the US Dollar Index could test immediate support at the nine-day EMA of 104.17, followed by the four-month low of 103.34, recorded on November 6. A decisive break below this crucial support zone may weaken the short-term price momentum, potentially driving the index toward the five-month low of 100.68.

The DXY may explore the region around the 50-day EMA at 105.62, aligned with the descending channel's upper boundary. A break above this level could reinforce the bullish bias and support the index to approach 110.18, the highest level since November 2022.

US Dollar Index: Daily Chart