Dollar Index – Tight consolidation expected before fresh drop, with 100 level acting as key barrier

The dollar index remains stuck in a narrow consolidation just above fresh multi-month lows, extending its sideways movement into a fifth consecutive session.

Larger bearish momentum is taking a breather following a steep two-week slide, driven by aggressive U.S. import tariffs and their delayed implementation, which undermined investor confidence in the outlook for U.S. economic stability.

Technical signals on both daily and weekly charts suggest that bears still maintain firm control, with the current pause likely temporary as markets recalibrate after the extended Easter weekend.

Near-term price action continues to trade below the key 100 psychological level — now turned solid resistance — further reinforced by the broken lower boundary of a broader bearish channel. This setup keeps the downside bias intact, with sustained pressure on the pivotal 99.00 support area (Fibo 61.8% of the 89.15–114.72 2021/2022 uptrend and recent lows) and the 98.53 mark (100-month moving average).

A decisive break below these levels would confirm a continuation of the broader downtrend, targeting the next major support at 95.18 (Fibo 76.4%).

Conversely, a rebound and daily close above the 100 handle would signal the potential for a stronger corrective bounce.

Res: 100.00; 100.42; 100.90; 101.23
Sup: 98.90; 98.68; 98.14; 97.81