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

#USDX H4: Buyers Attempt a Recovery, but Confirmation Is Still Needed The USDX is showing signs of a short-term recovery after a strong bearish move, with price rebounding from the 98.53 area toward 99.65. Buyers have regained some momentum, but the broader market structure remains bearish until key resistance levels are reclaimed. The previous decline from the 101.40–101.60 region was important because USDX broke several major support levels, including 101.05, 100.43, and 100.03. This sequence confirmed a shift from bullish to bearish structure and pushed the 100-day moving average lower. At present, price is trading slightly above the 100-day MA around 99.50–99.60. This is a positive sign for short-term momentum, but the 200-day MA remains above price near 99.80–99.90 and continues to slope downward. The 100-day MA is also below the 200-day MA, meaning the medium-term trend has not yet turned bullish.

The 99.65–99.90 zone is therefore the key area to watch. A strong H4 close above the 200-day MA would improve the bullish outlook, while a sustained break above 100.03 would provide additional confirmation. If buyers manage to reclaim 100.03, the next resistance levels to monitor are 100.43 and 101.05. A stronger recovery could eventually target 101.61 and 101.78. On the downside, 99.04 is the first important support. If price faces rejection around 99.65–99.90 and falls back below the 100-day MA, the recovery could weaken and USDX may retest 99.04. A break below this support would increase the possibility of a move toward 98.53. Overall, the current setup is bullish for short-term momentum but still bearish from a medium-term perspective. The reaction around 99.65–100.03 will likely determine the next meaningful move. Until that resistance is decisively broken, the rebound should be treated as a recovery within the larger bearish structure.