The U.S. Dollar Index has stabilized recently as inflation numbers have come in lower than expected. This has led to speculation that the Federal Reserve may cut interest rates later this year. The Dollar Index measures the dollar’s performance against other major currencies and its steadiness indicates a cautious approach towards the dollar amidst changes in inflation and interest rates.
On the 4-hour chart, the U.S. Dollar Index is trending lower, approaching a key support level at 105.748. If this level is broken, the index could test the 50-period moving average at 105.145. Buyers may step in to push the index back up to 106.017, while selling pressure could drive it down to 105.371.