Dollar Index Trapped in Bearish Trend

The US Dollar Index (DXY) remains in a bearish trend but within a defined range, according to UOB Group's latest technical analysis. The dollar index is currently trading within a narrow band, with key 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 it has not yet broken decisively below its established support zone. They emphasize that as long as the index remains within the current range, the downside bias is likely to persist.

The dollar index has been under pressure recently due to shifting expectations for Federal Reserve policy and global risk sentiment. A weaker dollar can have broad implications for commodities, emerging market currencies, and international trade competitiveness.