US Dollar slides on de-escalation of Iran tensions — Powell speaking at 10:00

[Ben Graham]

Selling flows in the US Dollar have came back promptly after the Iranian repost on the US Base of Al-Udeid in Qatar – What was previously thought to have the potential to be a new phase of a prolonged conflict materialized into a cease-fire.

A build-up of angst through last week trading sent markets gapping strongly at the weekly open, but all of these moves largely reversed. The story is largely similar to August 2024 preceding tensions between Israel and Iran that led to similar reversals.

The Dollar index is now back into the 98 handle and back into its 2025 descending channel.

Equity markets just now turned from fear to greed and it seems that players have already turned the page on the conflict.

All eyes now turn to the upcoming FED Chair Powell's testimony at the US Senate, coming up at 10:00 A.M. ET.

Fear and Greed Index, June 24, 2025 – Source: CNN

Read More: Equities rebound as Israel-Iran ceasefire hopes emerge; oil plunges, Aussie outperforms

Dollar Index Multi-Timeframe Technical Analysis

DXY Weekly Chart

Weekly charts still point to relatively bearish momentum, however the current 98.00 handle served as consolidation throughout the 2020 Covid repricing and the 2022 start of the hike cycle.

Hence, there are volume-and-price magnets for USD trading around this zone, where except for any particular bullish or bearish catalyst, markets may use as a zone for price consolidation.

The Weekly RSI is in the oversold region, therefore prices would have to consolidate before pursuing a continuation of the 2025 downtrend.

A reversal from here would however point to a retest of the 100.00 Main Resistance.

DXY Daily Chart

DXY Daily Chart, June 24, 2025 – Source: TradingView

The Daily picture for the Dollar is close to Neutral despite a major reversal of the weekly bullish open that tested the Daily 50-Moving Average at 99.50.

Sellers have failed to push below the 2025-lows situated at 97.60, and an indecision doji is forming at the highs of the Daily descending channel.

Momentum is still slightly bearish – Positioning seems to have been one-sided but some of that has been undone by the tensions.

We will get more clarity as markets now turn their eyes back to Federal Reserve speeches and Economic Data, which had by the way surprised to the downside in the past few weeks.

DXY 1H Chart

DXY 1H Chart, June 24, 2025 – Source: TradingView

The Greenback gapped down slightly in today's open and is now consolidating right at the 98.00 Psychological Level that bulls used as support in the week-ago bullish impulsive move.

The DXY is trading oversold as the correction exceeded 100 pips, and the rest of the story is to see if markets want to maintain their sell-side bias on the World's global currency.

A further breakdown from here points toward a test of the 97.62 lows attained right as Israel started its offense at Iran's Nuclear capacity, a further support just below at the 97.50 psychological zone.

A rebound from here would look to test the 98.50 pivot, however buyers will have to take prices out of the 2025 descending channel first.

Safe Trades!

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