DXY Plummets on Ceasefire Hopes, Inflation Fears Ease

US President Donald Trump announced a two-week suspension of planned military strikes against Iran, triggering a massive risk-on rally across global financial markets. The reopening of the Strait of Hormuz led to an intraday slump of over 10% in Crude Oil prices, directly easing inflationary concerns.

This development tempered expectations for a rate hike by the US Federal Reserve, exerting additional downward pressure on the Greenback. Technical analysis, including a breakdown below the 23.6% Fibonacci retracement and the 200-period Exponential Moving Average, confirms strong selling pressure, with the Moving Average Convergence Divergence (MACD) showing expanding negative momentum.

Immediate support for DXY stands at the 38.2% Fibonacci retracement level at 98.72; a clear break below this level opens the way toward the 50.0% retracement at 98.13. Initial resistance is at the 23.6% retracement at 99.46, reinforced by the 200-period EMA near 99.30.