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The US Dollar Index remained practically unchanged, moving just three hundredths of a point despite long-dated US Treasury yields touching their highest levels in nearly two decades. Spot prices held slightly above the 99.50 level within a narrow session range of 17 pips, reflecting a clear lack of directional momentum in foreign exchange markets. This disconnection between surging bond yields and currency performance highlights persistent market hesitation. Technically, the index continues to trade below its flat 200-day Exponential Moving Average (EMA) near 99.75, a key dynamic resistance level that has successfully capped every upside attempt for the past two weeks. For market participants, the failure of the greenback to rally on strong yield support suggests underlying fatigue among dollar bulls. Traders should closely monitor the 99.75 EMA barrier for potential breakout signals or further consolidation, while keeping an eye on broader macroeconomic drivers that could break the current range-bound price action.
