Dollar Index strengthens above 98.30 with bullish momentum building, while weakness re-emerges below 98.10 short-term - 02.01.2026

 Aetram Global Research - US Dollar Index (DXY) Outlook

Aetram Global Research - US Dollar Index (DXY) Outlook
 Aetram Global Research - US Dollar Index (DXY) Outlook

Dollar Index strengthens above 98.30 with bullish momentum building, while weakness re-emerges below 98.10 short-term - 02.01.2026

Chart Name: US Dollar Index (DXY)
Current Market Price: 98.45
Current Trend: Short-term trend turning bullish after reclaiming key moving averages with improving momentum.
Trend Dominance: Bulls gaining control as price sustains above short-term averages with higher lows.

Chart Outlook & Prediction
* The Dollar Index is stabilizing above the key SMA, signaling short-term bullish recovery within a broader consolidation. Sustained strength above 98.60 can extend the move toward 99.00–99.20. Failure below 98.10 may invite renewed selling pressure toward 97.80, keeping the index range-bound.

Upcoming Events (Catalysts)
* US Non-Farm Payrolls
* US CPI Inflation
* Fed Commentary

Major Support and Resistance
* Support: 98.10 | 97.80 | 97.50
* Resistance: 98.60 | 99.00 | 99.30

Trend, Volume, Dow Theory Analysis
* Price has reclaimed short-term averages, confirming higher low formation. Dow Theory signals early accumulation with improving structure. Momentum indicators support upside continuation, though trend strength remains moderate, suggesting controlled advance rather than impulsive breakout.

Breakout Strategy (Bullish)
* Entry: Above 98.65 / Stoploss: 98.15
* Targets: 99.00 / 99.20 / 99.50

Breakdown Strategy (Bearish)
* Entry: Below 98.05 / Stoploss: 98.55
* Targets: 97.80 / 97.50 / 97.10

Final Takeaway
* US Dollar Index is showing early bullish revival after base formation near 97.80. While bulls are regaining short-term control above 98.30, sustained strength is required above 98.60 for trend expansion. Until then, traders should expect range-driven moves with data-led volatility.

Caution Note
* All Positivity Negates on breaking below 98.10
* All Negativity Negates on breaking above 98.60

Disclaimer: This analysis is for educational purposes only and not financial advice. Please consult your financial advisor before making trading decisions.

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