- DXY was extended to Monday’s losses, falling below the trade voltage below 106.00.
- Canada and China have refused to use US tariffs and refusing to increase economic uncertainty.
- Technical indicators show that a crossover form of Belis is formed, which can reduce the greenback.
The US Dollar Index (DXY), which tracks the Greenback’s performance against six major currencies, extended its decline on Tuesday, following losses from the previous session and slipping below the critical 106.00 level. The US Dollar faced heavy selling pressure after the US imposed new tariffs on Canada, Mexico, and China without any last-minute extensions. In response, both Canada and China announced retaliatory measures, adding to market uncertainty and fueling further volatility.
US Dollar Stumbles as Trade War Heats Up
- Canada is back with 25% tariffs on US goods worth $30 billion, with more taxes in three weeks. In snakes, China has regained US tariffs and contributed to global trade voltage.
- US Finance Minister Scott Bescent has asserted that tariffs are expected to decrease and that Chinese manufacturers will absorb tariffs.
- Many mixed data show that concerns about male dogs are locally increasing as growth slows and continuous inflation puts the US economy at risk.
- Regarding the next step in the Federal Reserve, the CME FedWatch tool shows an increase in the odds of investors and Fed rate reductions this year have grown later.
- Stock trading is mixed with uncertainty about tariffs, with a focus on market mood.
DXY Technical Forecast: Bearish Crossover Approaches Amid Mounting Selling Pressure
The US Dollar Index continues its downward trend, falling below both the 20-day and 100-day Simple Moving Averages (SMA). These two averages are approaching a bearish crossover near the 107.00 level, which may indicate further downside pressure. Technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) suggest increasing selling momentum.
If the bearish crossover materializes, the index could extend losses toward the 105.50-105.00 range in the near term. To shift the short-term outlook back to neutral, a rebound above 107.00 would be necessary.
