DXY Slips Out of a Range – Is This the Beginning of a Bearish Trend?
Arslan Butt • 1 min read
It’s been a couple of months since the US dollar was consolidating within a trading range of 98.25 – 96.80. However, the leading currency broke out of the trading range after worse than expected economic data from the United States. So far today, the dollar index is mostly steady against other major currencies, but traders’ appetite for risk was kept in check after the US President Donald Trump renewed his tariff threats towards China.
Yesterday, the US President Trump was ready to inflict another round of tariffs on Chinese imports if he does not gets a trade deal with President Xi Jinping at the June 28-29 summit in Osaka.
With that, the uncertainty level has heightened for the US dollar, which is trading outside of the broad trading range of 98.25 – 96.80. The dollar index is holding below 96.80 support level, which now is working as a resistance.
On the lower side, the triple bottom level is likely to extend support around 95.85 level.
Key Trading Level: 96.872
Dollar Index (DXY) – Trade Idea
The idea is to stay bearish below 96.80 with a stop loss over 97 and take profit of around 95.90.