Technicals:
The DXY is sitting near its pivot, with technical momentum remaining mildly bearish, but oversold conditions suggest a potential for a bullish bounce. If the 97.55 support is broken decisively, further downside is likely. Upside is capped by resistance at 98.64; a break above this may confirm a short-term reversal to the upside.
Key Levels to Watch
Pivot Level: 98.12
Key Support: 97.55
Key Resistance: 98.64
Fundamentals:
- Persistent US twin deficits, reduced safe-haven flows, and a global trend of diversifying away from dollar assets all present headwinds.
- The spread between US yields and foreign peers is at historic highs, but with the Fed expected to ease and global growth forecasts improving, the dollar's advantage is eroding.
- Safe-haven demand could temporarily support the dollar in response to global shocks, but is not expected to reverse the broader downtrend this year.
Analysis by Terence Hove Senior Financial Markets Strategist at Exness
The DXY is sitting near its pivot, with technical momentum remaining mildly bearish, but oversold conditions suggest a potential for a bullish bounce. If the 97.55 support is broken decisively, further downside is likely. Upside is capped by resistance at 98.64; a break above this may confirm a short-term reversal to the upside.
Key Levels to Watch
Pivot Level: 98.12
Key Support: 97.55
Key Resistance: 98.64
Fundamentals:
- Persistent US twin deficits, reduced safe-haven flows, and a global trend of diversifying away from dollar assets all present headwinds.
- The spread between US yields and foreign peers is at historic highs, but with the Fed expected to ease and global growth forecasts improving, the dollar's advantage is eroding.
- Safe-haven demand could temporarily support the dollar in response to global shocks, but is not expected to reverse the broader downtrend this year.
Analysis by Terence Hove Senior Financial Markets Strategist at Exness
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.