The dollar index bounces around 99.50 as commercial tensions decrease, but the bearish pressure persists

• The DXY index is quoting about 99.50, rising around 0.75% in the day.
• President Trump’s decision to delay 50% tariffs on EU imports raises short -term feeling.
• Alcistas need a sustained daily closure above 100.50 to cancel the bassist perspective.

The US dollar index (DXY), which tracks the value of the US dollar (USD), is pushing up as market participants respond to the decrease in commercial tensions. The markets are obtaining a new optimism of President Trump’s decision to delay the implementation of 50% tariffs on EU imports.

At the time of writing, the DXY index is registering a modest rebound from the minimum of four weeks reached on Monday. It is observed that the index is quoting around 99.50 during the American session, uploading almost 0.75% in the day, reducing some of the losses of the previous week. Although the short -term rebound has given some relief to the bulls of the US dollar, the general technical structure continues to favor the decline, with the impulse indicators still struggling to become bullish.

When observing the daily chart, the DXY broke down decisively below the bearish flag pattern last week. The rupture occurred around the 100.50 area, which had previously provided short -term structural support, but now it has become a key resistance zone.

However, the index is trying to recover from a short -term support level around the round figure of 99.00. This area, which also includes the recent oscillation minimum about 98.80, is offering a mattress for now while buyers return cautiously.

That said, the rebound is approaching a strong resistance near the 21 -day exponential mobile average (EMA) in 100.10, and the base of the flag previously broken in 100.50 now acts as a roof. The price remains below the short -term mobile socks, with both EMAS of 21 days and 50 days (101.22) leaning down.

From a structural point of view, any upward movement will probably face winds against unless the index can break convincingly above these mobile socks. On the positive side, a decisive breakdown above the psychological zone of 100.00 will be the first objective for the bulls. Until then, the path of lower resistance seems inclined towards decline, with the rebounds probably seen as sales opportunities. Meanwhile, a rupture below the ground of 98.80 would probably open the way for a deeper correction towards the 97.50 region.

When observing the impulse indicators, the relative force index (RSI) is increasing slightly after the fall of last week, but remains below the 50 mark, indicating that buyers have not yet taken control. Similarly, the convergence/divergence indicator of mobile socks (MACD) remains in negative territory, with the signal line without showing signs of a bullish crossing. The lack of conviction in both indicators suggests that the market remains inclined in favor of sellers despite the current rebound.