US Dollar Index consolidates near 98.10 as bearish momentum cools, with upside trigger above 98.30 and weakness below 98.00 - 02.01.2026

US Dollar Index consolidates near 98.10 as bearish momentum cools, with upside trigger above 98.30 and weakness below 98.00 - 02.01.2026

Aetram Global Research - US Dollar Index (DXY) Outlook

Aetram Global Research - US Dollar Index (DXY) Outlook

US Dollar Index consolidates near 98.10 as bearish momentum cools, with upside trigger above 98.30 and weakness below 98.00 - 02.01.2026

Chart Name : U.S. Dollar Index (DXY)
Current Market Price : 98.16
Current Trend : Short-term sideways to mildly bearish, attempting stabilization after recent corrective decline.
Trend Dominance : Bear dominance weakening; buyers cautiously defending key demand zone near multi-timeframe support.

Chart Outlook & Prediction 
* US Dollar is consolidating near the 98.10–98.00 demand zone after a prolonged decline. Momentum indicators show stabilization rather than continuation selling. Sustaining above 98.00 can invite a technical pullback toward 98.45–98.85. A decisive breakdown below 98.00 would revive bearish pressure toward 97.60.

Upcoming Events (Catalyst)
* U.S. macro data releases (Employment/Inflation): volatility risk, directional bias data-dependent.
* Fed policy commentary: hawkish tone supports upside; dovish cues cap rallies.
* Global risk sentiment: risk-on weakens DXY; risk-off supports safe-haven bids.

Major Support and Resistance
* Support: 98.00 / 97.80 / 97.60
* Resistance: 98.30 / 98.55 / 98.85

Trend, Volume, Dow Theory Analysis
* Price is below the declining major averages, indicating corrective structure. Recent volume shows selling exhaustion. Dow Theory reflects lower highs and lower lows, but the pace of decline is slowing near structural support, hinting at a potential mean-reversion phase.

Breakout Strategy (Bullish)
* Entry: Above 98.32 | Stoploss: 97.98
* Targets: 98.55 / 98.72 / 98.85

Breakdown Strategy (Bearish)
* Entry: Below 97.98 | Stoploss: 98.32
* Targets: 97.80 / 97.60 / 97.35

Final Takeaway
* U.S. Dollar Index is at a critical inflection zone. Bears remain in control structurally, but downside momentum is fading. Holding above 98.00 keeps scope for a technical rebound. A clean move beyond 98.30 improves recovery odds, while loss of 98.00 reopens deeper corrective risk.

Caution Notes
* All positivity negates on sustained break below 98.00.
* All negativity negates on sustained break above 98.30.

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