The dollar came under increased pressure on Wednesday after fresh wave of optimism about a possible end of US-Iran war deflated safe-haven demand.
The dollar index, which tracks the performance of Greenback against its six major peers, hit three-week low, on renewed probe through the trendline support (currently at $97.85), after several recent attacks failed to register clear break of the trendline.
Support is reinforced by the base of thick daily cloud and 50% retracement of $95.35/$100.48 rally) that add to its significance.
Sustained break lower is needed to confirm bearish signal and open way for continuation of the downtrend from $100.48 (2026 high, posted on Mar 31) and expose next target at $97.31 (Fibo 61.8%).
Caution on potential repeated failure at trendline support, though near-term focus is expected to remain at the downside, as daily studies are in bearish configuration (reinforced by the latest 20/200DMA and 20/100 DMA bear-crosses and falling 14-d momentum entering negative territory).
Also keep focus on dynamics of peace talks in the Middle East, as geopolitics remain one of key dollar drivers nowadays.
Res: 97.90; 98.20; 98.43; 98.52
Sup: 97.50; 97.31; 97.00; 96.56
