The U.S. greenback is creeping up towards a key pattern resistance!
Sellers have been in management to this point, however a break above this degree may shift the momentum.
We’re watching the 4-hour chart intently to see if the greenback retains grinding decrease or lastly breaks out.
U.S. Greenback Index (DXY) 4-hour Foreign exchange Chart by TV
The U.S. greenback picked up some momentum to begin the week, because of an odd mixture of optimism and risk-off vibes.
Merchants have been feeling upbeat on discuss that the U.S. would possibly announce extra commerce offers earlier than the July 9 deadline. There have been additionally rumors that the deadline might be prolonged to August 1. On the identical time, danger aversion kicked in after Trump rolled out recent tariff charges on a couple of buying and selling companions.
Do not forget that directional biases and volatility situations in market worth are usually pushed by fundamentals. In the event you haven’t but achieved your fundie homework on the U.S. greenback, then it’s time to take a look at the financial calendar and keep up to date on each day basic information!
The U.S. Greenback Index (DXY) had been climbing off its 96.50 lows and managed to hit the 97.50 space earlier than pink candlesticks began displaying up on the 4-hour chart.
Was yesterday’s upswing a fluke?
We’re conserving an in depth eye on the 97.50 to 98.00 zone. That space’s filled with technical hurdles, just like the R1 Pivot Level at 97.48, the 38.2% Fib of the late June drop, and the 100 SMA on the 4-hour chart.
Extra importantly, it’s bumping proper up towards the pattern line resistance that’s been holding since mid-June.
If the pink candles preserve coming and bearish momentum picks up, DXY may slip again to its 96.50 lows and even print recent 2025 lows.
But when the bulls present up and the index begins pushing above the 98.00 deal with, then we might be a break within the longer-term downtrend, with the following stops probably round 99.00 and even 100.00.
Whichever bias you find yourself buying and selling, don’t overlook to follow correct danger administration and keep conscious of top-tier catalysts that would affect total market sentiment.
Disclaimer:
Please bear in mind that the technical evaluation content material supplied herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one side of a complete buying and selling technique. The technical setups mentioned are supposed to focus on potential areas of curiosity that different merchants could also be observing. In the end, all buying and selling choices, danger administration methods, and their ensuing outcomes are the only duty of every particular person dealer. Please commerce responsibly.
