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Category: Forex News, News

US Dollar Price Forecast: Fed Decision Looms, Can DXY Break 102.59 as EUR/USD and GBP/USD Slide?

Dollar Index Price Chart – Source: Tradingview

The US Dollar Index is trading near 102.43 on the 4-hour chart after extending its recovery from the 101.54 support area. What stands out to me is that price has reclaimed the short-term moving average and continues to hold above the rising trendline, keeping the broader structure constructive. The recent sequence of higher lows also suggests buyers remain in control, although DXY is now approaching another important resistance area.

The first resistance I am watching is 102.59. A clean break above that level would expose 102.92, followed by 103.32. On the downside, 102.03 is the first important support, with 101.54, 101.18, and 100.87 becoming more relevant if sellers regain control.

RSI is trading in the upper portion of its range, confirming strong bullish momentum but also suggesting the move is becoming somewhat stretched. I am leaning bullish while DXY remains above 102.03 and the rising trendline. A sustained break above 102.59 would strengthen the case for 102.92, while a move below 102.03 would weaken the immediate bullish setup.

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