US Dollar Index falls back below 107.00 but downside remains limited as Treasury yields remain high

• The US Dollar Index sees a mild decline for Wednesday, slipping back past the 107.00 level.
• Downside momentum likely to remain limited as US Treasury yields, US economic data continue to hold on the high end.
• The DXY is up 3.2% on the year, 7.25% from 2023’s lows.

The US Dollar Index (DXY) saw some minor declines on Wednesday, with the major currency index declining around 0.3% for the mid-week trading session.

The Dollar Index has drifted away from the week’s eleven-month high at 107.35, but downside moves are likely to remain limited as the DXY remains bolstered by rising US Treasury yields and an overall healthy economic outlook for the US economy, albeit with a few hotspots.

Forex Today: Dollar slides but still rules

US Treasuries saw continued upside for Wednesday, with the 10-year Treasury yield hitting 4.88% during the day’s trading, a seventeen-year high.

US ADP employment data showed an 89K uptick in private payroll positions, far below the forecast 153K, but jobs are still being created in the US economy.

Next up on Thursday will be US Jobless Claims, and investors will be looking ahead to Friday’s Non-Farm Payrolls (NFP), which is forecast to show a minor downtick from 187K to 170K.

DXY technical outlook

Intraday price action is catching technical support from the 100-hour Simple Moving Average (SMA) near 106.60, with the 200-hour SMA pushing into 160.40.

The DYX continues to rise from the year’s lows, riding a bullish trendline from 99.50 and long-term Dollar bulls will be looking to make a decisive push into 108.00.

DXY daily chart

DXY technical levels

DOLLAR INDEX SPOT

OVERVIEW
Today last price	106.77
Today Daily Change	-0.31
Today Daily Change %	-0.29
Today daily open	107.08

TRENDS
Daily SMA20	105.57
Daily SMA50	104.05
Daily SMA100	103.35
Daily SMA200	103.13

LEVELS
Previous Daily High	107.35
Previous Daily Low	106.8
Previous Weekly High	106.84
Previous Weekly Low	105.52
Previous Monthly High	106.84
Previous Monthly Low	103.27
Daily Fibonacci 38.2%	107.14
Daily Fibonacci 61.8%	107.01
Daily Pivot Point S1	106.8
Daily Pivot Point S2	106.53
Daily Pivot Point S3	106.25
Daily Pivot Point R1	107.35
Daily Pivot Point R2	107.62
Daily Pivot Point R3	107.9