US Dollar Index (DXY) picks up above 98.00 as geopolitical tensions grow

💡 DMK Insight

The USD’s bounce above 98.00 could signal a short-term recovery, but traders should be cautious. After hitting lows around 97.70, the recent uptick in the USD Index (DXY) suggests some buying interest, yet it’s crucial to note that this level still sits within a broader range that’s been established over the past few weeks. This could indicate that the dollar’s strength is more about short-term positioning rather than a fundamental shift. If the DXY can hold above 98.00, it might attract more buyers, but resistance levels around 98.50 and 99.00 will be key to watch. A failure to break through these levels could lead to renewed selling pressure. On the flip side, if the DXY slips back below 98.00, it could trigger stop-loss orders, pushing the index back toward the 97.70 support. Traders should also keep an eye on correlated assets like gold and equities, as a stronger dollar often pressures these markets. Monitoring economic indicators and upcoming data releases will be essential for gauging the dollar’s trajectory in the near term.