United Overseas Bank (UOB) Group’s latest technical analysis points to a persistent downside bias for the US Dollar Index (DXY), while also capping any upside for the Australian dollar against the greenback at 0.7075. These assessments, released on August 4, 2026, outline critical levels for traders navigating the current forex landscape.
Dollar Index (DXY): Contained Bearishness
UOB notes that the DXY remains under pressure, trading within a defined range. Key support is identified at 103.50, with resistance at 104.50. A daily close below 103.50 could accelerate losses toward 103.00, while a break above 104.50 would negate the bearish outlook. The analysis highlights that the downside bias will persist as long as the index stays inside this band, with no decisive breakdown yet confirmed.
AUD/USD: Resistance at 0.7075 Holds Firm
Separately, UOB’s FX strategists emphasized that the Australian dollar’s rally attempts are capped near 0.7075, a level that has repeatedly attracted selling pressure. The pair is seen oscillating between that resistance and support around 0.6900. Only a sustained move above 0.7075 would signal a momentum shift; otherwise, the currency is likely to remain range-bound. Fundamental drivers include the Reserve Bank of Australia’s steady policy, commodity price fluctuations, and the relative strength of the US dollar amid hawkish Federal Reserve signals.
The bank’s technical framework provides actionable levels for forex traders, while also underscoring the dollar’s broader influence on cross-asset markets, including commodities and equities. Upcoming US inflation and employment data are expected to be key catalysts for the next directional move.
