US Greenback Forecast: DXY Rally Deepens as Euro Bears Face Technical Squeeze…

The DXY’s surge previous the 98.950 swing excessive and clear break above the 50-day easy transferring common (presently at 98.30) confirms a bullish near-term setup. Intraday motion on July 29 prolonged to 99.048 earlier than settling slightly below the determine, suggesting contemporary momentum flows as stops have been triggered above prior resistance. The 50-day common, which had acted as a cap since mid-Could, now flips to rapid help.

The July 24 low at 97.109 stays the important thing pivot for near-term pattern validation, with the mid-range consolidation base at 97.664 reinforcing help. Upside focus is now on the June 23 excessive at 99.421. A confirmed day by day shut above that stage would expose the psychological 100.00 deal with, adopted by 100.540 as the following structural barrier.

Outlook: Danger Premium Compression Lifts Greenback, However Structural Headwinds Stay

The greenback’s present energy is supported by each coverage divergence and the decision of trade-related danger premiums. Nonetheless, unresolved fiscal issues, inconsistent messaging from U.S. management, and long-term reserve forex dangers nonetheless loom. Whereas upside towards 100.540 is believable within the close to time period, structural imbalances and coverage contradictions are more likely to cap broader good points over the intermediate horizon. Merchants ought to view present energy as opportunity-driven fairly than trend-defining.

Extra Info in our Financial Calendar.