US Dollar Index (DXY) declines to around 98.80 after four days of increases

    by VT Markets
    /
    Jan 12, 2026

    Technical Analysis

    The immediate support level for the DXY is at the 50-day EMA of 98.70 and the nine-day EMA of 98.66. If the index falls below these points, it may lose short- and medium-term momentum, potentially dropping to 97.75, the lowest level since October 25. Today, the USD performed differently against major currencies. It dropped by 0.48% against the Swiss Franc, marking its weakest performance, while showing slight changes against others. The table below displays percentage changes of the USD against seven major currencies, with the biggest drop against the Swiss Franc at -0.61%. These changes are shaping the current foreign exchange market.

    Market Analysis

    In late 2025, our market analysis highlighted the US Dollar Index testing its 50-day EMA support near the 98.70 mark. The overall expectation was for this support to hold, possibly allowing for a rebound to the 99.57 high. This created a clear range for short-term trading strategies. However, that support level broke as we entered January 2026. Last week, December 2025’s Consumer Price Index (CPI) report showed core inflation decreasing to 2.5%, which was lower than the expected 2.7%. This data strengthens the likelihood of the Federal Reserve considering rate cuts in the near future. Create your live VT Markets account and start trading now.

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