USD Index Shifts to Downside Bias Amid Range-Bound Outlook

The US Dollar Index (USD Index) has shifted to a downside bias after failing to break above its weekly Ichimoku cloud and instead plunging below its 55-week Exponential Moving Average (EMA). According to Quek Ser Leang of United Overseas Bank, this move nullifies the positive setup that was in place earlier. The USD Index had been attempting to push through the cloud at 103.20, but it did not succeed.

The sharp drop has tilted the bias toward the downside, but flat EMAs suggest any decline should be contained within a range of 97.63/101.64. May's low and last week's high serve as key levels in this range, with the base of the weekly Ichimoku cloud near 97.63 and the top of the cloud at 101.64.