Overview: On Tuesday, the Dollar Index (DXY) showed weak performance, failing to consolidate the partial recovery seen on Monday after last week's sharp decline. Although the dollar posted gains against major Asian currencies, such as the Japanese Yen (JPY) and the Korean Won (KRW), these gains were quickly erased during the US trading session. The return of a "risk-on" sentiment in the markets, with stock indices rising in Asia, Europe, and US futures, has led investors to move away from safe-haven assets, further weighing on the dollar.

Fundamental Factors:

Market Sentiment: The return of the "risk-on" sentiment has favored riskier assets at the expense of the US dollar. The easing of tensions in the Middle East has helped reduce flows into safe-haven assets, exerting bearish pressure on the DXY.

Economic Data: On Tuesday, attention will be focused on the weekly mortgage applications data published by the MBA and the EIA's report on US crude oil inventories. Additionally, the speech by Federal Reserve's Waller could provide further insight into the direction of US monetary policy.

Currency Performance: The EUR/USD has resumed its bullish trend, partially erasing the weakness seen at the start of the week. The British pound (GBP/USD) reached over two-year highs, supported by expectations that the Bank of England (BoE) will not cut rates as much as the markets anticipated.

Commodities and Precious Metals: WTI saw a sharp decline, breaking a three-day winning streak due to renewed demand concerns and some profit-taking. Gold prices alternated between gains and losses above the $2,500 per ounce mark, while silver prices remained near the $30.00 per ounce level.
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Good reaction at the marked level.
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