DXY faces pressure as the peace deal is loomingU.S. Dollar Currency IndexTVC:DXYWiseLeoTradingThe US President Donald Trump signaled that a peace deal could be reached shortly, raising hopes for reopening the Strait of Hormuz. This would ease energy price pressures stemming from the nearly three-month blockade of the waterway, which has kept oil prices elevated and fueled global inflation. However, recent reports of renewed strikes in the Gulf have heightened concerns over the fragile agreement, potentially erasing the progress made in recent negotiations. The DXY may remain stable until an official agreement is finalized. The focus this week is on the PCE—the Fed's favorite inflation gauge—which could provide further clues on whether inflationary pressures are broad-based across economic sectors. A clearer inflation signal would prompt the Fed to adopt a more definitive stance on future interest rate movements. Technically, the DXY is consolidating within the 98.95–99.10 range before attempting to breach above the EMA24. However, lower swing highs and bearish EMAs suggest that the downtrend remains intact. If the DXY closes below 98.95, the index could slide toward the next support level at 98.80. Conversely, holding above 98.95 may sustain the ongoing consolidation within the 98.80–99.10 range. By - Van Ha Trinh - Financial Market Strategist at Exness