DXY is testing the descending trend line, breakout happening? The US dollar firmed as Trump's escalating tariff threats, from pharma to Indian exports, amplified trade tensions and boosted safe-haven flows. Despite rising global uncertainty, optimism over a possible US-China trade truce extension and a sharply narrower trade deficit also underpinned dollar strength.
DXY retreated below the descending trend line and the ascending channel's upper bound. The price is consolidating below the 100.00 psychological resistance, which aligns with the 23.6% Fibonacci Retracement. A rebound from the support at 98.00, in line with the ascending channel's lower bound, could prompt a retest of the channel's resistance, paving the way for further gains toward the 38.2% Fibonacci Retracement and 102.00 resistance, upon breaking 100.00. Conversely, a bearish breakout of the channel and close below the 98.00 support could prompt a further decline toward the following support at 97.00.
By Li Xing Gan, Financial Markets Strategist Consultant to Exness
