US Dollar Index (DXY) Slips to 98.60 Amid Geopolitical Uncertainty and Risk-on Sentiment

US Dollar Index (DXY) Pulls Back as Traders Watch Geopolitics

The US Dollar Index (DXY) saw a mild gap down to 98.60 on Friday as risk sentiment improved marginally heading into the weekend. The move lower came alongside softness in other safe-haven assets such as Brent crude and Gold.

Asian Currencies Lead Recovery

• Risk-sensitive Asia ex-Japan (AxJ) currencies such as the Korean Won (KRW), Philippine Peso (PHP), and Taiwan Dollar (TWD) rebounded on improving sentiment.
• The White House’s recent statement that US President Donald Trump will make a decision within two weeks regarding a potential strike on Iran offered a less aggressive stance, temporarily easing market concerns.

“While Trump’s timeline adds a small measure of restraint, it offers little clarity and the geopolitical backdrop remains volatile,” Tredu.com analysts note.

DXY Technical Outlook: Support and Resistance Levels

• Despite the pullback, mild bullish momentum remains intact, although RSI indicators have eased.
• Support Levels: 98.00 and 97.60 (recent low)
• Resistance Levels: 99.50 (50-day moving average), 100.20 and 100.60 (23.6% Fibonacci retracement of 2025 high to low)

“The DXY remains in a fluid zone, with geopolitical risks skewed two ways. A sharp shift in safe-haven flows could easily tilt direction,” analysts add.

Related Tredu.com Reads:

• Gold and Oil Retreat: Safe-Haven Flows Ease
• How the DXY Reacts to Geopolitical Risk
• Risk-On Moves: What It Means for Emerging Market FX