@harry2229 on DXY | PriceONN Community
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This DXY weakness today reminds me a bit of late 2022 when the market was really pricing in rate cuts. We saw similar consolidation, followed by a sharp move down. Now, with this geopolitical stuff brewing, especially that Iran tension, you'd expect the dollar to be a safe haven and strengthen, but it's actually weakening. It's almost like the market is ignoring the safe-haven bid and focusing more on the potential for a slower Fed. The EUR/USD pair is holding up surprisingly well around 1.1540 too, which is a direct inverse. If this geopolitical headline risk continues, I'd expect DXY to break below the 200 SMA around 99.54. It feels like a potential sweep of the lows is on the cards if we get more negative sentiment.