DXY | Will DXY Break Its Trendline?U.S. Dollar Currency IndexTVC:DXYDatTongMacro approach: - The US dollar strengthened as renewed trade uncertainty and escalating geopolitical tensions boosted demand for safe-haven assets. - US threats to cut Tehran off from the global financial system provided further support for the greenback, while renewed tariff tensions between the US and Canada added to market uncertainty. - The US dollar could remain supported if geopolitical and trade-related risks continue to outweigh pressure stemming from US Treasury buyback plans. Technical approach: - After retesting the key support at 98600, DXY rebounced above EMA21. The index is hovering above the support at 98.95, just right below the descending trendline, suggesting a further correction upon a clear breakout. - If DXY breaks above the descending trendline, the price may rise toward EMA78 and the immediate resistance at 99.50. - On the contrary, a close below 98.95 may prompt a trend-follow trade toward the subsequent support at 98.60. Analysis by: Quoc Dat Tong, Senior Financial Markets Strategist at Exness