Technical Analysis: USDX

The USDX hit a 4-month low

On Wednesday, the USDX declined for 3 consecutive trading days and broke below the 105 mark to a 4-month low. It ended down 1.15% at 104.33.

US ADP employment change failed to meet expectations in February

On Wednesday, US employment change (February) fell from 186 thousand to 77 thousand Vs. 140 thousand (forecast), according to the data from the ADP. The data recorded the lowest growth since July 2024.

The expectation that the Fed will cut the interest rate climbed

As investors show their worry that Trump’s tariff policies will drag down global economic growth, traders are increasingly betting that the Fed will cut the interest rate this year. The Fed is now expected to lower the interest rate for 3 times this year, with a decrease of 25 basis points per time.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, the USDX continued falling. The bearish market trend prevailed in the short term. In terms of technical indicators, MACD went downwards after death cross occurred, showing that the USDX will decline further. Investors should focus on whether the USDX will break through the support at 103.2. It will dip further with potential support at 101.8 if it breaks below 103.2.

4-hour chart

On the 4-hour chart, the USDX was prone to fluctuation and declined. The bearish market trend prevailed in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether the USDX will break through the resistance at 104.8. It will drop if it rebounds but is capped at 104.8.

Key resistance: 104.8, 105.7

Key support: 103.2, 101.8

Generally speaking, the bearish market trend prevailed in the short term. Investors should focus on US economic data and speeches delivered by officials at the Fed during the day.