DXY Slips Out of a Range – Is This the Beginning of a Bearish Trend?

The U.S. President Trump was ready to inflict another round of tariffs on Chinese imports if he does not gets a trade deal with President..

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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.

Support Resistance
96.024 97.339
95.557 98.187
94.709 98.654
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.

Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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