Dollar Index Remains Range-Bound with Downside Bias

The US Dollar Index (DXY) continues to trade within a defined range, but with a prevailing downside bias, according to UOB Group's technical analysis. As of this week, the dollar index is navigating a narrow band between support at 103.50 and resistance at 104.50.

UOB's FX strategists note that the DXY's recent price action reflects a bearish tilt, but the index has not yet broken decisively below its established support zone. The bank emphasizes that as long as the index remains within this range, the downside bias is likely to persist, but a clear break of the lower end would confirm a more significant decline.

The analysis points to key levels for traders to monitor: a daily close above 104.50 would negate the current bearish outlook, while a move below 103.50 could accelerate losses towards 103.00.