US Dollar Index: The strong support area of 102.72/103.34 was unexpectedly broken due to the impact of tariffs, leading to a new low in prices, illustrating that one cannot predict Trump’s whims.
Now, the theory of a dollar collapse is being discussed widely, even by the elderly in the vegetable market.
Needless to say, the US Dollar Index has reached the critical support range of 98.25/98.94 for the long cycle, coinciding with the long-term trend line on the weekly chart, and most importantly, the daily chart has formed an engulfing pattern at this key point. The US Dollar Index will next challenge the long-term critical resistance range of 102.72/103.3. After that, we will determine the subsequent trend.
Factors that may drive the US Dollar Index higher in the future are likely to be expectations of another interest rate hike.