FX.co ★ U.S. Dollar Index (USDX) in Forex Trading

USDX H4: Buyers Defend Support as a Potential Rebound Takes Shape The US Dollar Index (#USDX) on the 4-hour chart is showing an interesting setup around the 98.70–98.75 area. After a prolonged decline from the 101.60 region, sellers have maintained control for several weeks, creating a clear sequence of lower highs and lower lows. However, the latest price action suggests that bearish pressure may be losing some strength as the index approaches an important support zone. Price is currently hovering near 98.74, where several recent candles have struggled to continue lower. This area has already attracted buying interest, with the market repeatedly reacting around the same level. The long lower wicks visible near the recent lows indicate that buyers are stepping in whenever price moves below the 98.70 region. If this behavior continues, the current consolidation could become the foundation for a short-term recovery.

The moving averages still reflect the broader bearish structure. The faster blue average remains below the slower red average, confirming that sellers have the larger trend advantage. Nevertheless, price is now significantly stretched beneath both averages, leaving room for a corrective rebound before another directional move develops. For a bullish scenario, the first important step would be a sustained move above 99.15, followed by a recovery toward 99.45–99.50. A stronger breakout through this region could open the way toward the 99.80–99.90 resistance area, where the longer moving average may create additional selling pressure. On the downside, 98.70 is the immediate level to watch. A clean H4 close below 98.70 would weaken the rebound idea and expose the 98.45 area as the next potential support. Overall, the chart favors watching for confirmation rather than chasing the decline. If buyers successfully defend 98.70 and push price above nearby resistance, a healthy technical bounce could develop. The broader trend remains bearish, but the current support structure gives bulls an opportunity for a meaningful short-term recovery.