US Dollar Index Under Pressure Amid 15% Tariff Threats and Key Support Testing

Key Facts

1The US Dollar Index (DXY) is facing pressure near 97.65 due to new 15% tariff threats.

2Traders are watching the 97.35 trendline support to determine if the dollar's slide will continue.

The US Dollar Index (DXY) is currently facing significant downward pressure near the 97.65 level following threats of new 15% tariffs. Market participants are closely monitoring the critical technical support level at 97.35 to gauge the dollar's next directional move. A break below this trendline support could trigger a broader technical sell-off, potentially fueling a rally in major currency pairs like EUR/USD and GBP/USD. Analysts suggest that the heightened trade tensions are injecting macro uncertainty into the forex markets, weighing heavily on greenback sentiment. Consequently, the current volatility highlights the sensitivity of the DXY to geopolitical developments and shifting trade policies. If the 97.35 floor fails to hold, it could signal a significant reversal in the dollar's recent strength. Traders remain on high alert as trade war fears continue to dominate the fundamental landscape.