Key Points
- USDX traded near 100.69, up 0.08%, after touching an intraday high of 100.89.
- The dollar remained supported after the Fed held rates steady but signalled that a rate hike may still come this year.
- Traders are watching 100.89 resistance and 100.53 support as the next short-term range.
USDX extended its climb on Thursday as the dollar rose to a one-year high against a basket of major currencies.
The move followed the Federal Reserve’s latest policy decision. The Fed kept rates unchanged as expected, but its updated projections showed that a rate rise remains possible by year-end. New Fed Chair Kevin Warsh also stressed that policymakers remain focused on returning inflation to the 2% target.
The dollar index rose as high as 101.127, while the 15-minute chart showed USDX holding near 100.69 after pulling back from 100.89. The move keeps buyers in control, although short-term momentum has started to cool near the top of the latest range.
Why Traders Are Watching This
Traders are watching USDX because the dollar is still benefiting from the Fed’s hawkish stance.
The recent fall in oil prices after the US-Iran interim peace deal has lowered rate expectations for many currencies. However, that relief has not weighed much on the dollar, as traders still see the Fed as more likely to stay firm on inflation than other central banks.
US growth expectations are also helping the greenback. Strong investment in AI continues to support the US economy, giving markets another reason to favour dollar exposure while other regions deal with weaker growth or lower rate expectations.
For CFD traders, USDX remains active because the next move could affect gold, oil, major forex pairs, and equity indices at the same time.
Key Trading Levels
| Level | What Traders Are Watching |
| 101.13 | Reported high and wider upside reference |
| 100.98 | Upper chart resistance |
| 100.89 | Intraday high and breakout resistance |
| 100.74 | 20-period moving average |
| 100.76 | 10-period moving average |
| 100.71 | 5-period moving average |
| 100.69 | Current trade zone |
| 100.53 | Intraday support |
| 100.42 | Lower range support |
| 99.96 | Deeper downside reference |
USDX is trading close to its short-term moving averages, with the 5-period MA at 100.710, the 10-period MA at 100.762, and the 20-period MA at 100.736.
The index remains in an uptrend from the 99.96 area, but the latest pullback below the moving average cluster shows that buyers may be pausing after the sharp climb.
A move back above 100.76 would suggest the recovery is stabilising. A break above 100.89 would strengthen the bullish setup and bring 100.98, then 101.13, back into focus.
On the downside, a move below 100.53 would weaken the near-term structure and could open a pullback toward 100.42.
Bullish and Bearish Setups
| Setup | Trigger | Potential Market Reaction |
| Bullish Recovery | Move Above 100.76 | Buyers may target 100.89 |
| Breakout Setup | Move Above 100.89 | Momentum may extend toward 100.98, then 101.13 |
| Pullback Setup | Hold Above 100.53 | Traders may watch for renewed buying interest |
| Bearish Break | Move Below 100.53 | Sellers may target 100.42 |
The bullish setup depends on USDX reclaiming the moving average cluster near 100.71 to 100.76. That would show buyers are still defending the post-Fed rally.
The stronger breakout setup needs a clean move above 100.89. If buyers clear that level, the index may attempt another push toward the wider high near 101.13.
The bearish setup builds if USDX breaks below 100.53. A move under that level would suggest traders are taking profit after the one-year high.
Disclaimer
The price levels and trade scenarios above reflect the author’s view at the time of writing and do not represent financial advice or an official recommendation from VT Markets. Traders should conduct their own analysis and manage risk carefully.
Trade USDX CFDs With VT Markets
USDX remains active when Fed policy, inflation expectations, oil prices, AI-led growth, and global currency flows move together.
With VT Markets, traders can access USDX CFDs alongside major forex pairs, gold, oil, indices, shares, ETFs, and other global CFD markets on a single platform. This helps traders track the wider dollar story while comparing moves across EURUSD, USDJPY, AUDUSD, XAUUSD, and crude oil.
Use VT Markets’ charting tools to monitor support, resistance, moving averages, and breakout behaviour as the next USDX setup develops.
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Why Trade USDX as a CFD?
USDX CFDs allow traders to take a view on rising or falling US dollar index moves without owning the underlying currency basket.
That flexibility can be useful when the dollar reacts quickly to Fed projections, inflation signals, oil price moves, and safe-haven demand. If USDX breaks higher, traders can watch bullish continuation. If profit-taking builds, traders can monitor downside setups.
With VT Markets, traders can follow USDX price action in real time and compare it with other major CFD markets from one account.
What To Watch Next
Traders should watch 100.89 resistance and 100.53 support.
A break above 100.89 could bring 100.98 and 101.13 back into focus. A move below 100.53 would weaken the short-term setup and shift attention toward 100.42.
Beyond the chart, the next drivers are Fed rate-hike pricing, US inflation data, oil price movement, AI-linked growth sentiment, and whether the dollar can hold its post-Fed gains.
FAQs
Why Is USDX Rising Today?
USDX is rising as traders price in the chance of a Fed rate hike by year-end. The Fed held rates steady, but its latest projections and inflation-focused tone kept the dollar supported.
What Is The Key Level To Watch For USDX?
The key upside level is 100.89. A move above this area could support a push toward 100.98 and 101.13. On the downside, 100.53 is the first major support level.
Can USDX Continue Higher?
USDX could continue higher if buyers reclaim the moving average cluster near 100.71 to 100.76 and push price above 100.89. A stronger breakout could bring 101.13 back into view.
What Could Push USDX Lower?
USDX could move lower if traders take profit after the one-year high, Fed rate-hike expectations soften, or oil prices continue falling enough to ease inflation concerns. A break below 100.53 would weaken the short-term setup.
Can I Trade USDX With VT Markets?
Yes. VT Markets offers access to USDX CFDs, allowing traders to take a view on rising or falling US dollar index moves without owning the underlying currency basket. Traders can also access forex, gold, oil, indices, shares, ETFs, and other CFD markets from one platform.
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