• US Dollar Index may fall toward the descending channel’s lower boundary around 96.70.
• The 14-day Relative Strength Index near 41 signals weak but not extreme downside momentum.
• The primary barrier lies at the nine-day EMA of 98.37.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is declining after three days of gains and trading around 98.00 during the European hours on Wednesday. The technical analysis of the daily chart shows that the dollar index is moving sideways within the descending channel, suggesting an ongoing bearish bias.

The near-term bias is bearish as the US Dollar Index holds below both the nine-period and 50-period Exponential Moving Averages (EMAs), which now act as a cap. This configuration suggests rebounds are likely to face selling pressure while the 14-day Relative Strength Index (RSI) around 41 hints at weak, but not extreme, downside momentum.

The DXY may navigate the region around the lower boundary of the descending channel around 96.70. Further declines would expose the 95.56, the lowest since February 2022, which was reached on January 27.

On the upside, the initial barrier lies at the nine-day EMA of 98.37, followed by the 50-day EMA at 98.69 and upper descending channel boundary around 98.90. A sustained break above this confluence resistance zone would cause the bullish emergence and support the dollar index to approach the 11-month high of 100.64, which was recorded on March 31.

(The technical analysis of this story was written with the help of an AI tool.)