U.S. Dollar IndexShort
DXY remains under pressure
Technical Perspective:
DXY broke out of its ascending trend line and formed lower swing points on the daily timeframe, with the price retracing towards the 105.00 resistance, which coincides with the breakout zone and Fibonacci confluence levels. If DXY reverses below 105.00, the index could extend its decline toward the 103.20 support. MACD is holding below the zero threshold, indicating further downside potential. Conversely, if DXY breaches above 105.00, the price could rise towards 106.00.
Fundamental Perspective:
Existing home sales in the US plummeted by 5.4% in Jun compared to the previous month, marking the steepest monthly decline since 2022 and the lowest sales volume since the beginning of the year.
Meanwhile, unsold housing inventory rose by 3.1%, equivalent to a 4.1-month supply at the current sales pace.
Longer and fewer transactions underscore a cooling US housing market and may prompt Fed easing, potentially weighing on the dollar.
DXY broke out of its ascending trend line and formed lower swing points on the daily timeframe, with the price retracing towards the 105.00 resistance, which coincides with the breakout zone and Fibonacci confluence levels. If DXY reverses below 105.00, the index could extend its decline toward the 103.20 support. MACD is holding below the zero threshold, indicating further downside potential. Conversely, if DXY breaches above 105.00, the price could rise towards 106.00.
Fundamental Perspective:
Existing home sales in the US plummeted by 5.4% in Jun compared to the previous month, marking the steepest monthly decline since 2022 and the lowest sales volume since the beginning of the year.
Meanwhile, unsold housing inventory rose by 3.1%, equivalent to a 4.1-month supply at the current sales pace.
Longer and fewer transactions underscore a cooling US housing market and may prompt Fed easing, potentially weighing on the dollar.
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