USD Weakens: Tariff Appeal & FX Rotation
- The US dollar is starting the week with downward pressure as the White house challenges the federal court's decision to block US tariffs. This growth has also dampened...
- The US Dollar Index (DXY) is down, while oil is up 2.40%.Stock indices are also slightly lower.
- Looking at the monthly chart, the Dollar Index remains high compared to the 2010s, when the US dollar was recovering from the 2008 financial crisis and subsequent quantitative...
Teh US dollar faces downward pressure as the White House challenges tariffs, impacting forex markets. Asian-Pacific currencies, particularly the Australian and New Zealand dollars, show gains, signifying a shift in currency dynamics. The Dollar Index (DXY) struggles,testing critical support levels,and oil prices climb.News Directory 3 examines the technicals: Moving averages now act as resistance, and a deeper selloff could see new ranges. Key pivot zones and U-turns in the index suggest possible retracements and consolidations. Monitor upcoming announcements and employment data for further insights. Discover what’s next for the dollar’s performance.
Dollar Under Pressure Amid US Tariff Uncertainty
Updated June 03, 2025
The US dollar is starting the week with downward pressure as the White house challenges the federal court’s decision to block US tariffs. This growth has also dampened risk appetite in the markets.Currency analysis shows major currencies are gaining, with Asian-Pacific currencies leading the way.The Australian dollar and New Zealand dollar have both increased by more than 0.80% against the US dollar during morning trading.
The US Dollar Index (DXY) is down, while oil is up 2.40%.Stock indices are also slightly lower. A weaker US dollar is a key theme in current forex markets.
Looking at the monthly chart, the Dollar Index remains high compared to the 2010s, when the US dollar was recovering from the 2008 financial crisis and subsequent quantitative easing. The low for the DXY in that decade was 72.80. the monthly moving average (MA) 200 is near 91.50, levels last seen in October 2021.It may be to early to call the dollar weak, especially since the Federal Reserve has not yet started cutting rates.
A key support zone to watch in the coming weeks is 95.50, as seen on the weekly chart.
after hovering around the 100.00 psychological level for the past two months,the index spent most of last week below it. Moving averages now sit above current prices, acting as resistance. Prices ranged between 100.00 and 106.00 from 2022 to 2024. A breakout to the upside at the end of last year was rejected, and prices have fallen sharply since the highs of 110.00 in February 2025.
A deeper selloff in the Dollar Index could lead to a new range between 95.50 and 100. Uncertainty and tariffs could accelerate this move.
the US Dollar Index has completed a U-turn from its September 2024 rise to its current decline.A key pivot zone between 100.00 and 100.75, now acting as resistance, was breached. Prices bounced from this zone last week. The descending trendline and moving averages are adding pressure, with the daily MA 20 near the 100.00 level as a potential retracement candidate.
Currently, the index is trading in the immediate support zone between 98.50 and 99.00. A break below this level could lead to the April lows at 97.20. However, a rebound could signal a return to the key pivot zone and a consolidation of current prices.
What’s next
The unfolding of potential Trump tariffs will likely influence the dollar’s trajectory. Traders should also monitor key events this week,including announcements from the Bank of Canada and the European Central Bank,as well as May employment data.