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25.05.2026 10:51 AM
DXY: hopes for peace in Middle East put pressure on US dollar

Achieving peace in the Middle East, or some stable variant of it, is putting pressure on the US dollar, which was previously supported by demand as a safe-haven currency. Against this backdrop, analysts warn of a temporary decline in the US dollar in the Forex market. Still, it is unlikely to be systemic once speculators have priced in this development.

From a technical standpoint, the US dollar index is trading above a strong support level at 98.90. Only a break below that level amid continued news of a peace agreement between the US and Iran could lead to a limited decline.

Technical view and trading idea

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The price is below the middle line of the Bollinger Bands and below the 5- and 14-period SMAs, which have crossed, confirming the strength of the downtrend. The RSI is below 50%. The Stochastics have entered oversold territory.

We expect a decline only after the 98.90 level is breached. A potential sell target could be 98.86.

Summary
Urgency
Analytic
Viktor Vasilevsky
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