DXY Testing Key Support – Bounce or Breakdown?

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DXY is pressing into a key support zone around 98.0 after fading geopolitical-driven gains. Markets continue to lean toward de-escalation despite failed US-Iran talks, with softer oil adding downside pressure to the dollar.

Technically, this level is important—previous resistance turned support. A hold here could trigger a short-term bounce, especially with sentiment already stretched. However, a clean break lower opens the door toward pre-conflict levels.

For now, rallies look sellable unless tensions materially escalate.

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