USD Index forecast for today by Traders Union analysts
The USD Index (USDX) is a measure of the value of the U.S. dollar relative to a basket of other major currencies, including the euro, British pound, Swedish krona, Canadian dollar, Japanese yen and Swiss franc. The countries issuing these currencies are key partners of the U.S. Therefore, the USD Index is a macroeconomic indicator showing the purchasing power of the U.S. dollar. Track the USD Index chart to see live price data, forecast for today and following trading days by TU analysts. This will help you make informed decisions and earn profit in the Forex market.
USDINDEX under pressure on the eve of the publication of the U.S. PCE
26.04.2024
For nearly an entire week, the U.S. Dollar Index tried to break 106.20 resistance, but the lack of progress spurred locking of profits on long positions, against which the index price retreated to 105.30 support. On the eve of the publication of the U.S. Personal Consumption Expenditure Index, investors are not rushing to buy the dollar, as a decreased PCE could give back the hope of the Fed reducing the interest rate at June meeting, which could be the reason for selling the dollar and testing its index at the 105.00 level; breaking 105.80 resistance could lead to a growth toward 106.10-106.30.
USDINDEX consolidates after rising
19.04.2024
Re-evaluation of expectations regarding the Federal Reserve's interest rate cuts, fueled by "hawkish" comments by its chair Jerome Powell, had a positive impact on the dynamics of the U.S. Dollar Index and contributed to its rise toward 106.20 resistance . However, all attempts by bulls to break it were unsuccessful, increasing the risks of breaking support at 105.60 and declining toward 105.00-104.80. However, a decline may activate the bulls. Breaking resistance will lead to a growth toward 106.60-106.80.
USD INDEX rises on inflation data
12.04.2024
The dollar index was under pressure, with bears trying to break the support around 103.70. Still, the bulls were helped by the data that showed the acceleration of inflation in the U.S., which reduced the probability of the U.S. Federal Reserve easing monetary policy at the June meeting and, therefore, contributed to the growth of the index, as a result of which the resistance around 104.80 was broken. The level of 105.56 was tested at the moment. The bulls may next test resistance around 105.80-106.00 levels; a loss of 105.25 support will lead to a decline towards 105.00-104.80.
USD INDEX back to support at 103.70, tries to rise on strong NFP
05.04.2024
The US dollar index showed positive dynamics, against the background of which, having pushed from the support at 103.70 and breaking through the resistance at 104.15, it rose to the resistance at 104.80, after which, again under pressure, returned to the above support. The strong US non-farm payrolls report favors the index at the moment, as the probability of the Fed easing its monetary policy at the next meetings is decreasing. The nearest target for the bulls may be the resistance at 104.60, and in case of its breach - resistance at 104.15, a loss of 103.90 will increase the risk of breaking the support at 103.70 and decline towards 103.30-103.00.
USD INDEX continues to recover losses
29.03.2024
After falling to the 102.80 support, the dollar index continued to recover its losses despite market participants expecting the US Federal Reserve to lower the interest rate at its June meeting. Due to the corrective growth, the index broke through several resistances and rose to 104.42, which became the maximum for this week. Passage of 104.15 resistance increases chances for growth in the direction of 104.60-104.80; loss of 104.15/00 support will lead to a decline in the direction of 103.80-103.70. In the short term, large-scale movements in the absence of fresh drivers are unlikely.
USD INDEX redeemed on the fall
22.03.2024
The recovery of the USD index from the support at 102.60 was interrupted by the comments of the US Fed Chairman Jerome Powell, in which he predicted three interest rate cuts, which brought the sellers back to the market and led to the decline of the index to the support at 102.85. Nevertheless, the dollar bulls are not going to give up, and amid renewed buying, the index returned to the resistance at 103.80, broke it, and rose to the level of 104.10. The stability of the U.S. economy and the dependence of the interest rate outlook on inflation data, which recently showed its growth, may continue to support the dollar index, and the next bulls may test the resistance around 104.30-104.60. Loss of 103.80 support will lead to a decline towards 103.50-103.30.
USD INDEX fails to develop upward momentum
15.03.2024
Despite the rise in consumer price inflation and wholesale producer prices in the US, which lowers the chances of the Fed lowering the interest rate at the next meeting, all attempts of the dollar index to develop upward dynamics continue to face selling interest. After breaking through 103.10 resistance, the index tested 103.35 but returned to 102.95 support amid selling pressure. Nevertheless, on the downside, it may be bought out, and bulls will try to break to the current high; loss of support will lead to a decline towards 102.70-102.50.
USD INDEX has been selling off all week
08.03.2024
Even though the Fed is not in a hurry to lower the interest rate and ignoring the rather strong report on employment in the U.S. manufacturing sector, the USD index is under steady selling pressure, against which it has been declining throughout the trading week, reaching the level of 102.30 at the moment. The next possible target for the bears could be the support near 102.00, but the dollar looks a bit oversold, increasing the correction risks. A breakdown of 102.80 will lead to a rise towards 103.40-103.80.
USD INDEX consolidates after the decline
01.03.2024
On the background of mixed statistics on the US, the dollar index is consolidating after falling to the support at 103.45. Growth attempts at this stage are limited by the resistance around 104.20, which the bulls are unable to break through. Volatility in the currency market has generally decreased, and investors are in a state of uncertainty, where expectations of the Fed lowering the interest rate put pressure on the dollar, and the stability of the U.S. economy and reassessment of the timing of rate cuts - support. Nevertheless, there are still chances to break resistance and rise towards 104.70-105.00; loss of support will lead to a decline towards 103.30-103.00. In the short term, consolidation may continue.
USD INDEX declines despite likely postponement of rate cuts by the Fed
23.02.2024
Despite reassessing the prospects of the US Fed lowering the interest rate, the dollar index is under pressure after rising to the resistance around 104.90, against which several support levels were broken, and 103.40 was tested, after which the index returned to the resistance at 104.05. The downside pullbacks are currently limited to the support at 103.85, which keeps the chances of breaking the resistance and rising towards 104.30-104.40; loss of support will lead to a decline towards 103.50-103.30.
USD INDEX declines after growth
16.02.2024
The acceleration of the US consumer inflation provoked the USD index to the resistance at 104.90. Still, from this level, the bulls were taking profits on long positions, which led to the index's decline to the support at 104.20. Failure to consolidate above the broken level of 104.55 should be considered as an alarm bell for the bulls, while there is no reason for a large-scale sell-off of the dollar at the moment, and its decline can be used for buying. Losing the current support will lead to a decline towards 103.80-103.60; passing 104.40 will lead to a rise to 104.70-104.90.
USD INDEX consolidates after rising on a strong NFP
09.02.2024
After last week's shakeout in the currency market, volatility has decreased significantly, and the USD index is consolidating in the range between this resistance and the support at 103.90 after rising to the resistance at 104.50 on the strong US Non-Farm Payrolls report. Failure of the bulls to break through the interim resistance at 104.40 may provoke profit-taking on long positions, against which it is possible to break the support and decline towards 103.50-103.20. Reassessment of the timing of the Fed's interest rate cut may help to maintain the demand for a fall. The breakdown of 104.40 will increase the chances of passing Monday's high and growth toward 105.00.
USD INDEX remains within the consolidation range
02.02.2024
The US Dollar Index has been consolidating in a range bounded by resistance at 103.60 and support at 102.80/55 all last week. The attempt to break the resistance on the comments of the US Fed Chairman Jerome Powell failed, and ahead of the US Non-Farm Payrolls report, the bears are trying to break the support, which may well succeed if the data disappoints investors; strong data may bring the index back to the above resistance.
USD INDEX is trading multi-directionally
26.01.2024
After rising to the resistance at 103.40, the US dollar index entered a consolidation phase and is trading in a wide range between this resistance and the support at 102.80-102.45. Strong GDP data confirmed the resilience of the US economy but was not a reason to buy the dollar. The US Core PCE Price Index will be published today, which may affect its dynamics. A strong indicator will lower the Fed's probability of easing monetary policy this spring and may support the dollar and vice versa. A break of resistance will provide growth in the direction of 104.00; loss of support will lead to a decline in the direction of 102.00.
USD INDEX consolidates after growth
19.01.2024
Having found support near the 101.80 level, the US dollar index, after a short consolidation, broke the resistance near 102.40 and rose to the 103.33 level. The demand for it is supported by the reassessment of the timing of the US Fed interest rate cut amid rather strong macroeconomic indicators of the country, as well as its oversold condition due to the sell-offs of the previous months. At this stage, the index is again in the consolidation phase, where there are still chances of resistance breakdown and growth towards 103.60-104.00, but the longer the bulls are unable to break the resistance, the higher the risks of support loss and decline towards 102.60-102.20 become.
USD INDEX consolidates after rebounding upwards
12.01.2024
Following the correction after a deep fall, the dollar index rose to the resistance at 102.45, after which it entered a consolidation phase, trading in a range bounded by this resistance and support at 101.80-101.60. The growth of the consumer price index in the U.S. supported the dollar, and today, the attention of currency market participants is focused on the publication of the producer price index. Its growth may contribute to resistance and growth in the direction of 103.00, and the decline in the index may provoke sales and attempts of bears to break through the support. In case of success, they will be able to test the level of 101.00.
USD INDEX continued its recovery
05.01.2024
At the end of last week and last year, the USD index recovered some of its losses and rose to 101.06. On expectations of three interest rate cuts by the US Fed this year, the dollar was actively sold. Still, Fed officials repeatedly pointed out that the start of the cuts may not happen soon and will depend on incoming US statistics, so with the start of the new year, the dollar bears continued to take profits on short positions, which led to the growth of the index to 102.44 at the moment. In case of a weak US NFP release, a decline towards 101.80 is possible; on a strong report, a breakdown of the current resistance and a rise towards 103.00 is possible.
USD INDEX ends the year near strong support
29.12.2023
Amid expectations of three interest rate cuts by the US Federal Reserve next year, the dollar sold off heavily against many of its peers during the week, as a result of which its index broke the support near 101.07 and declined to 100.30 support. The subsequent recovery is limited by the resistance at 101.07, which indicates the risks of a renewed decline to the support at 100.75. Its loss will lead to a decline to 100.60-100.40; passing the resistance will provide a rise to 101.20-101.40. The probability of three rate cuts significantly undermined the bulls' positions. Still, this process's beginning is unlikely to occur in the foreseeable future, so the dollar bears should be extremely cautious.
USD INDEX continues to fall
22.12.2023
After announcing three interest rate cuts next year, the U.S. Federal Reserve provoked dollar selling. Against this background, its index remains under pressure, as a result of which the bulls failed to break through the resistance around 102.25, but the bears, taking advantage of the situation, broke through the support at 101.40 and tested the level of 101.15 so far. The outlook for the dollar has deteriorated, and the bears' next target could be the support around the 100.50 level. Today, the U.S. data will be published, which may affect its dynamics: on strong data, a rebound in the direction of 101.40-101.80 is possible; weak data may contribute to a decline in the direction of 100.80-100.50.
USD INDEX broke through support and collapsed on the decision of the US Federal Reserve
15.12.2023
The consolidation of the US dollar index in the range between resistance at 103.90 and support at 103.10 ended with breaking through support and falling to 101.40, facilitated by the US Federal Reserve's forecast that three interest rate cuts should be expected next year. Pullbacks are now limited by resistance 101.80, below which there are still risks of breaking through support and falling to 101.00. Despite the Fed's expectations of three rate cuts, the stability of the US economy may support the dollar, so buying it on the decline should not be ruled out.
USD INDEX in anticipation of the US labor market data
08.12.2023
Having found support around 102.70, the US Dollar Index showed positive sentiment, which allowed it to break through resistance around 103.40 and test the level of 103.85. Ahead of the US labor market data release, the index came under pressure to test the 102.90 level. Strong data may cast doubt on the expected interest rate cut by the US Fed next spring, which may support the dollar. The bulls may test the week's high again; otherwise, the index will decline to the 102.20 support level.
USD INDEX recovers after the fall
01.12.2023
Almost all the week, the US dollar sold off, helped by increased expectations of the US Federal Reserve lowering the interest rate in spring next year. Thus, the dollar index broke through the support at 102.80 and fell to 102.10, where there is buying interest. Due to the liquidation of shorts from this level, the index recoups losses, having risen to 103.20. From this level, it is possible to sell and decline in the direction of 102.60-102.40; on the "hawkish" comments of Jerome Powell, it is possible to break through the resistance and rise in the direction of 103.40-103.60.
USD INDEX declines after a growth attempt
24.11.2023
The slowdown in US consumer inflation, the decline in the producer price index, and a cooling labor market triggered USDINDEX selling, which, after rising to 103.80, declined to the support at 103.25. Thus, the probability of its fall back to the support at 103.00-102.80 remains high; passing 103.50 will allow testing 103.80 again.
USD INDEX under pressure from sellers
17.11.2023
The cooling of the labor market and slowdown of inflation in the U.S. contributed to the resumption of selling the U.S. dollar index, against the background of which the support was broken at 104.50 and the level of 103.60 was tested. The nearest resistance is at 104.17, which indicates the risk of breaking the support and falling towards 103.20-103.00; passing the resistance will lead to growth to 104.60-105.00. Downside risks prevail at the moment.
USD INDEX rises after falling
10.11.2023
Weak data on the US labor market provoked sales of the US dollar, resulting in its index falling to support around 104.50. However, from this level, the index regained its losses and rose to resistance at 105.48, broken through Jerome Powell’s “hawkish” comments, and the bulls tested the 105.63 mark. However, below this level, downside risks in the direction of 105.30-105.00 will remain; breaking it will lead to an increase to 105.90.
USD INDEX declines after rising
03.11.2023
On the decline to the support around 105.60, the USD index was repurchased, which allowed the bulls to break the resistance around 106.55 and test the level of 1.067. Still, from this level, the bulls were taking profits on long positions, which led to the decline of the index back to the support mentioned above, which increases the risks of its breakdown and falls towards 105.00; passing the resistance at 105.90 will lead to the growth to 106.20-106.50. It is premature to talk about trend reversal.
USD INDEX bought back on the decline
27.10.2023
The status of a haven asset amid geopolitical risks, the stability of the US economy, and high interest rates continue to support the dollar, whose decline this week was halted by support near 105.00. After testing it, the index rose to resistance near 106.53. The proximity of strong resistance levels may encourage profit-taking on long positions, against which a decline towards 106.00-105.80 is possible; breaking through the current resistance will allow testing resistance near 107.00.
USD INDEX trades multi-directionally
20.10.2023
After rising to 106.30, the US dollar index trades mixed, alternately testing this resistance and support at 105.70-105.60. The relatively "soft" comments of the US Fed Chairman Jerome Powell have significantly reduced the probability of an interest rate hike at the next meeting, which puts pressure on the dollar and may lead to a decline towards 105.50-105.00; passing 106.10 will allow testing 106.30-106.50.
USD INDEX grows after decline
13.10.2023
Profit-taking on long positions in the US dollar led to a decline in the index to the support at 105.20. The growth of consumer prices in the US provoked dollar purchases, against which the index returned to the resistance at 106.23, which increases the probability of its breakthrough and growth to 106.00; loss of support at 106.00 will lead to a decline towards 105.60-105.40.
USD INDEX under Bulls' control
06.10.2023
All last week, the dollar index demonstrated positive dynamics, which tested the resistance at 106.85, which was facilitated by the growth of yields on US government bonds. After that, there was a pullback to the support at 105.90, but on the robust data on the US labor market, the bulls tested the level of 106.60. At current levels, the bears may become active again and try 106.20-106.00; passing the present resistance will allow them to test 106.85 again.
Why is it important to know the USD Index forecast?
The USD Index is the most popular and heavily traded currency index, and a benchmark used to measure the value of the currency of one of the world’s largest economies. The USDX was first introduced in 1973 after the dissolution of the Bretton Woods Agreement. The index price is updated 24h with the exception of Saturdays and Sundays. Its significance is equated to such popular indices as DAX, Dow Jones, etc.
TU experts study the USD Index using instruments and methods of technical analysis. The price forecast is then made based on them.
Traders can use this measure to assess the condition and strength of the U.S. currency in the international arena. In the Forex market, the USD Index helps understand the expected trend on the price charts of currency pairs with the U.S. dollar. For example, if the index grows, there will be a bullish trend on the USD/CAD chart, and bearish trend on the EUR/USD price chart.
FAQ
1
What is the USD Index?
The USD Index is a measure of the value of the U.S. national currency relative to a basket of six other currencies issued by strategic partners, but also key competitors of the U.S.
2
Who was the first to use the USD Index and when?
The USD Index was first established by JP Morgan in 1973. Since then, the index has been actively used in the Forex market.
3
What information does the USD Index provide?
The USD Index carries macroeconomic value, as it can be used to determine price dynamics of
currency pairs with the U.S. dollar (EUR/USD, NZD/USD, GBP/USD, etc.). The USDX measures the strength of USD against other major currencies.
4
What instruments are used for making the USD Index forecasts?
In order to make the USD Index daily forecast, Traders Union analysts use support/resistance levels,
technical indicators and other methods of technical analysis that help to determine the approximate dynamics of the USD Index price. Traders are recommended to use the USD Index live chart to see the real picture.