The US Dollar Index remained under mild pressure during Thursday’s Asian session, June 11, struggling to extend its previous rebound from near the weekly low. Despite the softer tone, the index continued to trade within its recent range and stayed close to the key 100.00 psychological level.
The DXY also remained just below its highest level since April 6, which was reached earlier this week. This suggests that while short term momentum has paused, the broader bullish structure has not yet been broken.
The latest Core US Consumer Price Index data helped ease concerns over persistent inflation pressure. This reduced some immediate demand for the US Dollar, as traders reassessed the outlook for monetary policy.
However, the headline CPI reading rose to its highest level in three years. This keeps the possibility of a Federal Reserve rate hike in 2026 on the table, limiting the downside for the Greenback.
At the same time, rising tensions between the United States and Iran continue to support demand for the safe haven US Dollar. As a result, any decline in the DXY may remain limited as long as geopolitical risks stay elevated.
From a technical perspective, the recent sideways movement appears more like a bullish consolidation than a sign of reversal. The DXY remains supported after breaking above the important 99.50 resistance area, which has now turned into a key support zone.
The index is also holding above the 200 period Exponential Moving Average near 99.01. This level continues to support the broader uptrend and strengthens the case for dip buyers to return on pullbacks.
As long as the index stays above the 99.00 to 99.50 support region, the bullish outlook remains intact.
RSI and MACD Signal Positive Momentum
Momentum indicators also continue to support the constructive outlook. The Relative Strength Index remains in positive territory around 62, showing that buyers still have control without pushing the market into overbought conditions.
Meanwhile, the MACD indicator remains above the zero line with a mildly positive reading. This suggests that upside momentum is still present, although not yet strong enough to confirm an aggressive breakout.
A sustained move above 100.00 would be needed to confirm renewed bullish momentum and open the door for further gains.
Immediate support is seen at 99.50, the previous resistance breakout level. A deeper pullback could bring the 200 period EMA near 99.01 into focus.
If the DXY holds above these levels, downside moves are likely to remain corrective. On the upside, a clear break above 100.00 could strengthen the bullish case and encourage further buying interest.
The US Dollar Index continues to show a bullish bias as long as it remains above 99.50. Fed rate hike expectations, safe haven demand, and a supportive technical structure all point to limited downside risk.
Although the index needs a convincing move above 100.00 to confirm the next leg higher, the broader setup still favors buyers on dips.
