USD: Supported by data and higher Oil – Danske Bank

💡 DMK Insight

The Dollar’s consolidation at this stage is crucial for traders, especially with SOL currently at $83.54. Higher oil prices typically strengthen the Dollar, impacting commodities and crypto markets alike. If the Dollar continues to gain traction, we could see pressure on assets like SOL, which may struggle to maintain upward momentum. Traders should keep an eye on the correlation between oil prices and the Dollar index, as a sustained rise in oil could lead to further Dollar strength, potentially pushing SOL below key support levels. On the flip side, if tensions between the US and Iran escalate, it could create volatility that might benefit safe-haven assets, including the Dollar. This dynamic could lead to short-term trading opportunities in SOL if it reacts positively to sudden market shifts. Watch for SOL to hold above $80 as a critical level; a break below could signal a bearish trend, while a bounce could indicate resilience against Dollar strength.