US Dollar Index Price Forecast: Hovers below 99.00 as bearish bias prevails

• The US Dollar may fall to near 97.91, the lowest level since March 2022.
• The RSI remains below the 50 level, suggesting a persistent bearish bias.
• The DXY may approach the primary barrier at the nine-day EMA of 99.21.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is holding its position after registering losses in the previous session and trading around 98.90 during the Asian hours on Thursday.

Technical analysis of the daily chart suggests a prevailing bearish bias, with the index remaining within a descending channel pattern. The DXY remains below the nine-day Exponential Moving Average (EMA), indicating that short-term momentum is weaker. Additionally, the 14-day Relative Strength Index (RSI) is positioned below the 50 level, indicating the persistent bearish outlook.

On the downside, the DXY could target 97.91, the lowest level since March 2022, which was recorded on April 21, followed by the lower boundary of the descending channel around 97.70.

The US Dollar Index may target the immediate barrier at the nine-day EMA of 99.21. A break above this level could improve the short-term price momentum and support the DXY to approach the descending channel's upper boundary around 100.30.

A breach above the channel could weaken the bearish bias and lead the index to test the 50-day EMA at the 100.72 level. Further advances would reinforce the short-term price momentum and prompt the DXY to explore the region around the three-month high at 104.37, reached on April 1.

US Dollar Index: Daily Chart