Technical Analysis
Immediate support for the DXY is identified at the 50-day EMA of 98.70 and the nine-day EMA of 98.66. A decline below these levels might weaken short- and medium-term momentum, possibly dragging the index to 97.75, the lowest since October 25.
Today, the USD showed varying performance against major currencies. It declined by 0.48% against the Swiss Franc, highlighting its weakest performance, while showing smaller changes against others.
The table provides specific percentage changes of the USD against seven major currencies, detailing its weakest comparison against the Swiss Franc at -0.61%. These shifts contribute to the current dynamics in the foreign exchange market.
Market Analysis
Looking back at the market analysis from late 2025, we were observing the US Dollar Index as it tested its 50-day EMA support around the 98.70 level. The prevailing view hinged on this support holding for a potential rebound toward the 99.57 high. This created a clearly defined range for short-term derivative plays.
That support did not hold, and the situation has evolved as we enter January 2026. Last week’s Consumer Price Index (CPI) report for December 2025 showed core inflation falling to 2.5%, below the forecast of 2.7%. This data reinforces the Federal Reserve’s path toward potential rate cuts in the coming months.
