US Dollar Index breaks higher with bullish dominance above 98.20; upside strength intact while weakness emerges only below 97.80 - 05.01.2026

Aetram Global Research - US Dollar Index (DXY) Outlook

Aetram Global Research - US Dollar Index (DXY) Outlook

US Dollar Index breaks higher with bullish dominance above 98.20; upside strength intact while weakness emerges only below 97.80 - 05.01.2026

Chart Name: US Dollar Index (DXY)
Current Market Price: 98.78
Current Trend: Trend has shifted bullish with higher highs supported by rising moving average structure.
Trend Dominance: Bulls dominate as price accelerates above key averages with expanding momentum strength.

Chart Outlook & Prediction

• The Dollar Index has confirmed a bullish breakout above the moving average ribbon with strong follow through. Momentum indicators support further upside continuation. Short-term consolidation near highs is possible, but unless price slips below 97.80, the structure favors a gradual move toward 99.20 and 99.80 zones.

Upcoming Events (Catalysts)

• US macro data releases
• Federal Reserve policy cues
• Global risk sentiment

Major Support and Resistance

• Support: 98.20 / 97.80 / 97.30
• Resistance: 99.20 / 99.80 / 100.40

Trend, Volume, Dow Theory Analysis

• Price action shows a clear higher high, higher low structure confirming bullish Dow Theory alignment. Volume data is unavailable, but momentum indicators, rising ADX, strong RSI above 70, and positive. Trend strength is improving, indicating continuation rather than exhaustion at current levels.

Breakout Strategy (Bullish)

• Entry: Above 98.90 / Stoploss: 98.20
• Targets: 99.20 / 99.80 / 100.40

Breakdown Strategy (Bearish)

• Entry: Below 97.80 / Stoploss: 98.40
• Targets: 97.30 / 96.80 / 96.20

Final Takeaway

• The US Dollar Index has entered a renewed bullish phase with strong momentum confirmation. As long as price sustains above 98.20, upside bias remains dominant. Short-term pullbacks are corrective in nature, while trend-following long positions remain favorable until key support levels fail decisively.

Caution Note

• Positivity Negates On Breaking Below 97.80
• Negativity Negates On Breaking Above 99.20

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