DXY Squeeze Incoming? Watch 99.00 ReactionFundamental Analysis:
The TVC:DXY has weakened as recent data shows GDP growth slowing to 2.4%, inflation cooling to 2.4%, and unemployment rising to 4.2%, increasing expectations of potential Fed rate cuts despite rates holding at 4.5%. Investor confidence has also dropped, with consumer sentiment at 50.8, and the trade deficit still wide at $123B, signaling softer economic momentum.
📉 Projection: Continued soft data could keep the dollar under pressure unless the Fed reinforces a hawkish stance.
⚠️ Risk Level: A strong upside surprise in inflation or employment data could reverse sentiment and push DXY higher abruptly.
Technical Analysis:
DXY is currently hovering around 99.65, just above a key support zone near 99.00 (PWL), where a potential liquidity grab may occur. The RSI is near 30, signaling oversold conditions, which often precede a short-term bounce.
📈 Projection: If price holds above 99.00, a rebound toward the 100.91 gap and possibly 103.19 (PWH) is likely.
⚠️ Risk Level: A clean break below 99.00 would invalidate the bullish setup and open the way to 97.50–98.00.
