Look at these price levels of the US dollar index while the backback benchmark reaches a hollow at 3 years

The US dollar index (DXY) has reached a little on Monday to three years in the midst of investor concerns concerning prices, economic prospects and possible threats to the independence of the federal reserve.

President Trump increased his criticism from the Fed president on Monday, Jerome Powell, and demanded that the central bank immediately reduces rates. The latest comments came after Trump last week said that “Powell’s termination could not come quickly enough”, while the White House economic advisor Keven Hassett said that the president assessed means to possibly reject Powell.

Investors fear that Trump’s decision to withdraw Powell before the end of the Fed chief’s mandate in May 2026 could not undermine confidence in the US dollar and the dominant role of the country in global financial markets.

The US dollar index, which measures the greenback performance against a basket of foreign currency, has decreased by around 5% since early April and has dropped by around 9% since the start of the year in the middle of uncertainty surrounding the Trump administration. The index was 98.32 Monday evening, negotiating at its lowest levels since March 2022.

Below, we decompose techniques on the weekly table of the US dollar index and identify the crucial levels that deserve to be monitored in the midst of the news potential for news.

Bull Trap confirms

After having exploded from a triangle descending last October, the US dollar index rallyed for several months, but met the sales pressure as it approaches its summit in 2022. Since that time, the index has a high lower trend, recently falling below the lower trend line of the model to confirm a tapewing trap, a commercial event that attracts investors of the purchase before the market losses.

However, while the relative force index (RSI) confirms the bearish momentum, the indicator has moved to the territory occurred, increasing the probability of short -term rebounds.

Identify the levels of support and crucial resistance on the signs in US dollars that investors can monitor.

Crucial support levels to monitor

The first lower level to watch is around 95. The index could attract the purchase interest in this area near a horizontal line which links several peaks and hollows to the graph between October 2017 and January 2022.

A larger lower decision could see the index revisiting support for less than 90. Investors can search for entry points at this location nearly two prominent swing stockings that have developed on the graph in the first half of 2021, preceding a 15 -month bull race.

This area is also located in the vicinity of a target of projected measured moving that calculates the distance from the triangle descending near its widest and deduced point which costs the lower trend line of the model.

Resistance levels of the keys to monitor

During the increases, it is worthwhile to closely monitor the key level 101. The counter-tempion of the rallies of this area would probably face a sale pressure near the lower trend line of the descending triangle, which could go from a region of support prior to future resistance.

More upwards could trigger a passage to around 107. Tactical traders that have accumulated positions in the US dollar index at lower levels can decide to lock the profits here near the notable Swing High, which is also aligning closely with a minor peak which formed on the graph last November.

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