Dollar Index – Bears Maintain Control, Pressuring Key Support Levels

The dollar index extends losses for a second straight day, weighed down by growing expectations of Fed rate cuts—fueled by softer-than-expected May inflation—and ongoing uncertainty surrounding trade tariffs.

Thursday’s renewed selloff pushed the index below the 98.00 level for the first time in seven weeks, bringing increased pressure on key support at 97.65 (2025 low from April 21, the lowest since March 2022 and near the lower boundary of a bear channel). A break below this level would mark the end of the broader consolidation phase and confirm continuation of the larger downtrend from the 110.00 peak (January 13).

A firm breach of the 97.65 pivot would open the way toward 96.06 (138.2% Fibonacci projection of the decline from 101.80) and 95.18 (76.4% retracement of the 89.15–114.72 rally from the 2021–2022 uptrend).

Res: 98.49; 98.80; 99.31; 99.72
Sup: 97.65; 97.50; 96.67; 96.06