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

USDX H4: A Potential Bounce From Key Support The USDX is currently showing an interesting setup on the H4 timeframe after a prolonged period of bearish pressure. Price has recently fallen sharply from the 99.80–100.00 region and is now trading around 99.03, close to an important support zone near 98.90–99.00. What makes this area worth watching is the reaction visible after the recent decline. Sellers pushed the index lower, but the latest candles show some hesitation around the support region. If buyers continue defending this level, the current structure could develop into a short-term recovery rather than another immediate continuation of the decline. The moving averages still suggest that the broader trend remains under pressure. The faster moving average is positioned below the slower one, and both are sloping downward. This means any recovery should initially be treated as a corrective bounce unless price can reclaim the nearby resistance areas with convincing momentum.

For the bullish scenario, the first important confirmation would be a sustained move back above 99.20–99.30. A successful break could open the way toward 99.45–99.55, followed by the 99.80 area where previous selling pressure appeared. If momentum becomes stronger, the index could eventually challenge the higher moving-average resistance. On the other hand, if 98.90 fails to hold and H4 candles close decisively below this zone, the bounce setup would weaken significantly. In that case, the market could revisit the recent lows around 98.50–98.70. For now, I would not chase either direction from the middle of the range. The 98.90–99.00 support zone is the key area to monitor. A clear bullish reaction there, followed by a break above 99.20–99.30, would provide a much stronger signal that USDX is preparing for a short-term bounce.