Article details
The US Dollar (USD) experienced a challenging week, with the US Dollar Index (DXY) falling to multi-week lows near 98.50, aligning with its 200-day Simple Moving Average (SMA). This decline reflects reduced geopolitical tensions, which diminished demand for the dollar as a safe-haven asset. However, underlying macroeconomic factors, such as the Federal Reserve's policy trajectory and inflationary pressures, continue to support the dollar's long-term outlook. Traders are closely monitoring whether this level will act as a support or trigger further weakness, especially with central bank decisions and economic data releases remaining pivotal. The technical setup suggests a critical juncture for the dollar, where a break below 98.50 could signal deeper losses, while a rebound might reinvigorate bullish momentum.
