The US Dollar Index (DXY) traded around the 97.00 level during Thursday’s Asian session, maintaining stability after recent declines. Despite holding ground, the index remains within a descending channel on the daily chart, signaling that the broader bearish bias is intact.
Technical signals favor downside pressure
The 14-day Relative Strength Index (RSI) stays below the neutral 50 mark, reinforcing negative momentum. Similarly, DXY trades below its nine-day Exponential Moving Average (EMA), suggesting short-term weakness persists.
On the downside, immediate support lies at the 97.00 psychological level, followed by 96.22, the lowest point since February 2022 and touched on September 17. A sustained break lower would expose the channel’s lower boundary near 95.10.
Potential rebound levels in focus
For the upside, the nine-day EMA at 97.32 remains the first key resistance. A breakout above this barrier could improve short-term momentum and allow the index to retest the descending channel’s upper boundary near 97.90, which is also aligned with the 50-day EMA at 98.03.
