US Dollar Price Forecast: Bearish outlook remains in play near 106.50

• The US Dollar Index strengthens to near 106.65 in Thursday’s early European session. 
• The negative outlook of the DXY remains intact below the 100-day EMA, but further consolidation cannot be ruled out. 
• The first support level is seen at 106.20; the immediate resistance level emerges at 106.80. 

The US Dollar Index (DXY) gains traction to near 106.65 during the early European session on Thursday. The cautious mood amid the tariff uncertainty from US President Donald Trump could lift the Greenback. 

However, the weaker US economic data have prompted traders to raise bets for interest rate cuts, now seeing two quarter-point reductions this year, with the first likely in July and the next as early as October. This, in turn, might cap the upside for the DXY.