US Dollar Index Price Forecast: Targets ascending channel's upper boundary near 99.00

• US Dollar Index may target the initial barrier at the ascending channel's upper boundary around 98.80.
• The 14-day Relative Strength Index remains above the 50 level, reinforcing the bullish bias.
• The primary support lies at the 50-day EMA of 98.00.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is holding losses after two days of gains and trading around 98.40 during the Asian hours on Friday. The technical analysis of the daily chart shows the dollar index moving upwards within the ascending channel pattern, suggesting that bullish bias prevails.

The short- and medium-term price momentums are strengthening as the DXY remains above the nine- and 50-day Exponential Moving Averages (EMAs). Additionally, the 14-day Relative Strength Index (RSI) is positioned above the 50 level, strengthening the bullish bias.

On the upside, the US Dollar Index may find its initial barrier at the upper boundary of the ascending channel around 98.80, followed by the eight-week high of 99.07, recorded on August 5. A break above this crucial resistance zone would strengthen the bullish bias and support the dollar index to approach the four-month high of 100.26, which was reached on August 1.

The US Dollar Index may find its primary support at the 50-day EMA of 98.00, followed by the nine-day EMA at 97.81 and the ascending channel's lower boundary around 97.50. A break below this crucial support zone would weaken the bullish bias and put downward pressure on the DXY to navigate the region around the 96.22, the lowest since February 2022, reached on September 17.

US Dollar Index: Daily Chart