The US Dollar Index (DXY), which tracks the strength of the US Dollar against six major currencies, is showing slight recovery after minor losses in the previous session. It is currently trading near 98.10 during early European trading hours on Tuesday.
Looking at the daily chart, the index is still moving within a descending channel, which generally signals a downward trend. This keeps the overall outlook slightly negative for now.
In the short term, the bias remains bearish as the index is trading below both the 9-day and 50-day Exponential Moving Averages (EMAs). The 14-day RSI is also hovering around 40, indicating weak momentum and suggesting that sellers are still in control after the recent decline.
If the downside continues, the index could move toward the lower boundary of the channel near 97.20. A clear break below this level may increase selling pressure and push the index toward 95.56 — its lowest level since February 2022, last seen on January 27.
On the upside, immediate resistance is seen around the 9-day EMA near 98.40. Beyond that, the upper channel boundary near 98.70 and the 50-day EMA at 98.83 could act as strong resistance levels. If the index manages to break above this zone, it may shift the sentiment to bullish and open the door toward 100.64, which is close to a 10-month high recorded on March 31.
