US Dollar Index remains subdued around 96.50s as the 10-year US bond yield approaches 1.50%

The US Dollar Index, also known as DXY, which measures the greenback’s performance against a basket of six rivals, barely falls some 0.04%, sitting at 96.48 during the New York session at the time of writing. The market sentiment is upbeat, with major US equities rising between 1.60% and 2.80%.

The market mood improved as investors assessment that vaccines helped tame the Omicron virus outbreak. Additionally, per Bloomberg’s report, the US FDA is poised to authorize pills from Pfizer and Merck to treat Covid-19 as soon as this week.

In the US bond market, the Treasury yields rise in the whole curve. The 2s, 5s, and 10s increase between four and six basis points, sitting at 0.6685%, 1.2238%, and 1.474%. The long maturity of the yield curve, with the 20s, and 30s, rise between two and three basis points, currently at 1.9043% and at 1.875%.

US Dollar Index (DXY) Price Forecast: Technical outlook

The US Dollar Index daily chart depicts the strong dollar narrative keeps in place. The price is above the central Pitchfork’s uptrend channel, which confluences with the ascending triangle on an uptrend. At press time, the DXY is testing the top-trendline of the ascending triangle on an uptrend, though earlier pierced the abovementioned reaching a daily low at 96.33. 

To the upside, the first resistance would be the figure at 97.00. A breach of the latter would expose the June 30 high at 97.80, followed by the ascending triangle target at 98.00.