Created
: 2025.04.22
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
US Dollar Index Price Forecast: Remains under pressure near 98.00, oversold RSI condition eyed
World FX news
Breaking news
US Dollar Index Price Forecast: Remains under pressure near 98.00, oversold RSI condition eyed
New
2025.04.22 15:58
2025.04.22 15:58
2025.04.22 15:58
- The US Dollar Index extends the decline to around 98.15 in Tuesday's early European session, down 0.17% on the day.
- The negative outlook of the index remains in play, but further consolidation cannot be ruled out amid the oversold RSI condition.
- The first support level to watch is 97.30; the key resistance level is seen at the 100.00 round mark.
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, extends its downside to near 98.15, the lowest since March 2022. The USD weakens across the board as fears over the independence of the Federal Reserve (Fed) intensified.
Trump slammed the Fed's Powell for continuing to support a "wait and see" mode on the monetary policy until greater clarity over how the new tariff policy will shape the economic outlook. Trump warned that the US economy would slow unless Powell decided to cut the interest rates immediately. Additionally, the uncertainty surrounding Trump's trade policies and his sweeping tariffs has already shaken global markets, undermining the US Dollar against its rivals in the near term.
Technically, the bearish sentiment of the DXY remains intact as the index holds below the key 100-day Exponential Moving Average (EMA) on the daily chart. The downward momentum is supported by the 14-day Relative Strength Index (RSI), which stands below the midline. Nonetheless, the oversold RSI condition indicates that further consolidation or temporary recovery cannot be ruled out before positioning for any near-term DXY depreciation.
The lower limit of the Bollinger Band at 97.30 acts as an initial support level for the DXY. A breach of this level could drag the index lower to 96.55, the low of February 25, 2022. Extended losses could see a drop to 95.14, the low of February 3, 2022.
On the other hand, the 100.00 psychological level appears to be a tough nut to crack for USD bulls. Any follow-through buying above the mentioned level could pave the way to 101.54, the low of April 4. The key upside barrier for the DXY is seen at 104.45, the 100-day EMA.
US Dollar Index (DXY) daily chart
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Last updated
: 2025.04.22
Related articles
US Dollar Index Price Forecast: Outlook remains bearish, key support level emerges near 100.00
13 minutes agoUS Treausry Sec. Bessent: Talks in Geneva with China resulted in a mechanism to avoid escalation
23 minutes agoUK Unemployment Rate ticks up to 4.5% in the quarter to March, as expected
43 minutes agoECB to stand by past stimulus policies in strategy review - Reuters
2025.05.13 14:39US will cut "de minimis" tariffs on China shipments from 120% to 54%
2025.05.13 14:33USD/CHF drops below 0.8450 as US Dollar struggles ahead of inflation data
2025.05.13 14:25
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
US Dollar Index Price Forecast: Outlook remains bearish, key support level emerges near 100.00
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, retreats from its highest level since April 10 to 101.60 during the early European trading hours on Tuesday.
New
2025.05.13 15:47US Treausry Sec. Bessent: Talks in Geneva with China resulted in a mechanism to avoid escalation
US Treasury Secretary Scott Bessent said on Tuesday that "talks in Geneva with China resulted in a mechanism to avoid escalation."
New
2025.05.13 15:37Palladium price today: Rare metals advance at the start of the European session
Platinum Group Metals (PGMs) trade with a positive tone at the beginning of Tuesday, according to FXStreet data. Palladium (XPD) changes hands at $951.00 a troy ounce, with the XPD/USD pair advancing from its previous close at $949.90.
New
2025.05.13 15:33UK Unemployment Rate ticks up to 4.5% in the quarter to March, as expected
The United Kingdom's (UK) ILO Unemployment Rate edged higher to 4.5% in the three months to March after reporting 4.4% in the quarter to February, data published by the Office for National Statistics (ONS) showed on Tuesday. The market forecast was for a 4.5% reading in the reported period.
New
2025.05.13 15:17Crude Oil price today: WTI price bearish at European opening
West Texas Intermediate (WTI) Oil price falls on Tuesday, early in the European session. WTI trades at $61.53 per barrel, down from Monday's close at $61.60.
New
2025.05.13 15:03ECB to stand by past stimulus policies in strategy review - Reuters
Several European Central Bank (ECB) policymakers told Reuters on Tuesday that the "ECB review will largely endorse past policies, including quantitative easing (QE), despite some policymakers' criticisms."
New
2025.05.13 14:39US will cut "de minimis" tariffs on China shipments from 120% to 54%
Citing a White House executive order, Reuters reported on Tuesday that the US will cut "de minimis" tariffs on China shipments from 120% to 54%, with a minimum flat fee of $100 to remain.
New
2025.05.13 14:33USD/CHF drops below 0.8450 as US Dollar struggles ahead of inflation data
USD/CHF retreats after posting more than 2% gains in the previous session, trading around 0.8430 during the Asian hours on Tuesday. The pullback comes as the US Dollar (USD) softens, possibly due to a technical correction.
New
2025.05.13 14:25GBP/USD jumps to near 1.3200 ahead of UK employment, US CPI releases
The GBP/USD pair climbs to near 1.3195 during the early European session on Tuesday. The Pound Sterling (GBP) edges higher against the Greenback due to positive developments surrounding the US and the UK trade agreement last week.
New
2025.05.13 14:03India Gold price today: Gold steadies, according to FXStreet data
Gold prices remained broadly unchanged in India on Tuesday, according to data compiled by FXStreet.
New
2025.05.13 13:36Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
