US Dollar Index Price Forecast: Trades with caution near 20-day EMA on US-Iran deal optimism

The Dollar Index Spot trades almost flat at around 99.00 at press time. The spot has remained confined in a tight range between 98.84 and 99.54 for the last two weeks. The index holds a mild bullish near-term bias as it stays above the 20-day Exponential Moving Average (EMA) at 98.91 and well over the former uptrend-line break area around 98.15.

The Relative Strength Index (RSI) at 52.71 hovers just above the neutral band, suggesting a modest positive tone rather than strong directional conviction.

On the downside, initial support is seen at the 20-day EMA at 98.91, with a deeper cushion emerging near the broken support trend line around 98.15. As long as price holds above these layers, pullbacks are likely to be treated as corrective within the broader recovery structure, while a sustained break above the March 28 high at 99.54 would lead to further upside towards 100.00.