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Daily Market Update

US DOLLAR INDEX NEARS 99.40 AS TWO-MONTH LOWS COME INTO FOCUS

The US Dollar Index (DXY) extended its decline toward 99.40 after failing to hold above 100.00. Weaker US economic data, lower oil prices and changing Federal Reserve expectations continue to influence Dollar sentiment. Traders are monitoring 99.40 and 99.20 as key support levels, while 100.00 and 100.40 remain important near-term resistance references.

Daily Market Update August 5, 2026

US DOLLAR INDEX NEARS 99.40 AS TWO-MONTH LOWS COME INTO FOCUS

US Dollar Index Nears 99.40 as Two-Month Lows Come Into Focus

The US Dollar Index declined for a second consecutive session on Wednesday after failing to consolidate above 100.00 earlier in the week. DXY traded near 99.84 as lower oil prices and reduced expectations of an immediate Federal Reserve rate increase influenced Dollar sentiment.

Recent US economic data provided limited support. JOLTS Job Openings declined to 7.359 million in June, below the market forecast of 7.4 million and the downwardly revised May reading of 7.537 million.

US Factory Orders contracted by 0.3% in June, compared with expectations for a 0.2% increase. The previous month recorded a 1.3% decline.

From a technical perspective, DXY has extended a corrective move from the double-top area above 101.65. The 14-day Relative Strength Index is near 36, while the Moving Average Convergence Divergence indicator remains below zero, reflecting weak short-term momentum without confirming a future price direction.

The 99.40 area, close to the June 15 low, is an important initial reference. The 200-day Simple Moving Average near 99.20 provides an additional technical level. If price moves sustainably below these areas, the supplied analysis identifies 98.75 and 97.60 as broader lower references.

On the upper side, 100.00 remains the nearest reference, followed by 100.40 and the July 30 high near 101.07.

Market participants will continue to monitor US economic data, oil prices, Federal Reserve expectations and price action around 99.20–100.40. These factors may contribute to short-term volatility in DXY and US Dollar-related currency pairs.

⚠️ Risk warning: Trading forex and CFDs involves significant risk and may not be suitable for all investors. You may lose all of your invested capital. Please ensure you fully understand the risks before trading. Past performance is not indicative of future results.

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