Home›Forex›Major Pairs›Dollar stays pressured ahead of US inflation data

Dollar stays pressured ahead of US inflation data

The dollar index has fallen for a second week, and a break below 99.4 could extend losses toward 97.8, while Friday's US August inflation report may shape the Fed outlook.

Reported · Written up by our desk · Major Pairs

The dollar index remained under pressure for a second consecutive week, reaching a new low in almost three weeks on Wednesday. Action Forex said the move followed a reversal into a broader downtrend after a late July US-backed intervention aimed at supporting a weakening yen and bond buybacks.

The outlet pointed to price action around the 99.4 area, noting bears regained control after a limited correction. It cited a full bearish setup on daily studies, including multiple moving average bear crosses, repeated closes below the 200-day moving average, and a negative shift in 14-day momentum.

Looking ahead, markets are awaiting the US August inflation report due Friday, which could affect expectations for the Fed's next policy meeting. Action Forex added that higher than expected CPI could support the dollar, but further upside follow-through would be needed to offset the bearish pressure.

On levels, the article described 99.45 as a key pivot, with a firm break below that level signaling bearish continuation and exposing targets at 97.82 and the 97.40 zone. It also flagged initial resistance at 98.96, then 99.14, followed by 99.60.

Latest closeDollar index 98.84 ▼0.3%

More like this

Sources