UOB analysts see downside bias for the USD Index after it failed to breach the weekly Ichimoku cloud and fell below the 55-week EMA.
The USD Index has developed a downside bias after failing to break above the weekly Ichimoku cloud and dropping below the 55-week exponential moving average (EMA). The move nullified a previously bullish technical setup, shifting momentum lower within a defined range.
Key support and resistance levels are set at 97.63 and 101.64, respectively, marked by May’s low and last week’s high. Flat EMAs suggest any further decline should remain contained within this range, despite the bearish tilt.
The index previously tested 101.39 on July 3, with analysts noting a break above 103.20 would have signaled further upside. Instead, a sharp drop last week invalidated the positive outlook, reinforcing the current range-bound outlook.