US Dollar Index Steadies Near 100.00 — Bulls Cautious Amid Fiscal Uncertainty
Key Highlights:
➤ DXY Rebounds
• Recovers from two-week low
• Bounces off key support at 99.50
• Trades cautiously near 100.00
➤ Fiscal Risks Cap Upside
• US House passes Trump’s tax bill by narrow margin
• Projected to add $3 trillion to federal deficit
• Moody’s downgrades US credit rating to Aa1 over rising debt levels
➤ Strong Economic Data Offers Support
• S&P Global PMI (May):
Composite: 52.1 vs 50.6
Manufacturing: 52.3 vs 50.2
Services: 52.3 vs 50.8
• Signals resilient business activity despite policy headwinds
➤ Technical Outlook
• Resistance: 21-day EMA at 100.40
• Support: 99.50 remains critical
• Next Resistance Zone: 101.30–101.50
• RSI: Hovering near 45.79 – indecisive
• MACD: Attempting bullish crossover but still below zero line
➤ Sentiment:
Risk-off mood continues to limit upside momentum in the US Dollar as traders eye fiscal developments and geopolitical tensions.
