What's Going on in the Dollar Index? DXY technical Analysis

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The Dollar Index has been maintaining below the key 100.00 Psychological Zone after a steep downfall since the beginning of 2025 and is currently right in the middle of the Major Forex currency board.

The US Dollar has recently benefited from several tailwinds: de-escalating US-China trade tensions, underscored by ongoing talks between key officials in London; a stronger-than-expected US Non-Farm Payrolls report; and a Federal Reserve that remains reluctant to cut interest rates.

The current US Federal Funds rate, holding at 4.50%, notably stands among the highest interest rates within major OECD economies, further supporting the greenback – The FED is still expected to keep its main policy rate unchanged at the upcoming meeting on June 18th.

This is still not enough for Dollar buyers to push the index above the 100.00 mark.

Let's take a look at the intra-day timeframes to spot what prevent the dollar to break the barrier and any signs of breakout to the upside or the downside.

For a look at the bigger picture, please refer to the article below:

Read More: Dollar Under Pressure - Dollar Index Higher Timeframe Analysis

Dollar Index Intra-Day Technical Analysis

DXY 4H Chart

DXY 4H Chart, June 10, 2025 – Source: TradingView

Dollar sellers have failed to maintain the downwards 4H channel that started after the May 12 peak, even after the dollar re-entered the channel on the failed attempt from the US Federal Court to block Trump's tariffs.

Since, beats on US jobs data have contributed to some recovery in the US Dollar which everybody had gave up on throughout the beginning of the year.

The wick on the June 5 lows establish a double bottom from the April 21 lows, which indicates that there will have to be key news and a resuming of broad dollar selling flows to make new technical lows on the index– this would happen in bad surprises in the ongoing US-China tariff talks.

In the meantime, the 4H charts still only show consolidation and momentum is neutral looking at the RSI, particularly after a failed attempt to break higher in yesterday's session.

• The Main Support Zone Stands at the 98.00 Zone

• The Main Resistance Zone stays at the 100.00 Psychological Handle

Let's take a closer look to see what patterns are potentially building.

DXY 1H Chart

DXY 1H Chart, June 10, 2025 – Source: TradingView

The Greenback has been forming what resembles as an inverted Head and Shoulders pattern though the pattern lacks clarity and would be validated with flows going towards more USD Strength - you would typically see this with selling flows in Gold and other currencies, similarly to what is forming in GBPUSD for example.

One fundamental contributor to such an effect would be the interest rates on longer-yield US bonds that shot up after last Friday's NFP report, bringing flows from other government bonds that provide lower yields.

A materialization of the inverted H&S would point towards 100.25, using the measured move approach to the Technical Pattern.

In the meantime, the 1H MA 200 is acting as immediate resistance and stays flat, indicating that momentum is still undecise, however the Hourly RSI showed a decent bounce as prices rebounded sharply from the 98.90 Pivot Zone.

The Dollar index is currently still ranging between the 98.60 Support Zone and the 99.40 Resistance Zone.

Safe Trades!

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