DXY | US Dollar Steady Ahead of CPI Data

Macro approach:
- The US dollar traded within a narrow range as fading hopes for a US–Tehran agreement kept geopolitical uncertainty in the Middle East elevated.
- Higher oil prices added to inflation concerns, while investors remained cautious ahead of the release of July US CPI data.
- The US dollar could see increased volatility today, as the inflation report may reshape expectations for the Federal Reserve’s policy path.

Technical approach:
- DXY bounced after retesting the key support at 99.50. The price is above between both converging EMAs, indicating a sideways continuation potential.
- If DXY remains above EMA21, the price may raise toward the immediate resistance at 100.03.
- On the contrary, closing below 99.75 may prompt a retest of the next support at 99.50.


Analysis by: Quoc Dat Tong, Senior Financial Markets Strategist at Exness