USD Index Support Under Pressure After Weak Payrolls Data

The US Dollar Index is hovering near a critical support level after falling sharply on Friday, as downbeat nonfarm payrolls data dampened bets on further Fed tightening.

The index lost around 0.5% in the previous session, deflating recent strength. The weaker-than-expected jobs report prompted markets to reassess the likelihood of another rate hike, putting sustained pressure on the dollar.

Technical analysts note that the index remains vulnerable as long as it trades below key moving averages, with the support zone now under increased threat. Traders are watching for any break that could accelerate losses.