REDATOR Ben Graham Posted July 10, 2025 REDATOR Report Share Posted July 10, 2025 Forex markets have been taking what resembles a summer break, with two consecutive days of muted movements – Most major pairs are contained within a 300 pip range, but with the USD attempting a rally, let's see if this may add fuel to create some volatility.The Weekly Jobless Claims report just came with a beat – 227K vs 235K expected and shows another sign of strength for US Employment. Claims had started to elevate in the middle of June but seems like it only was temporary as we just received another positive report.The latest tariffs news were the announcement of 50% tariffs on Copper imports (questionable idea by the way, trying to relaunch US Industrial production and giving them higher import costs isn't the most viable thing, but markets are getting used to bad ideas from the Trump Administration), and also 50% tariffs on anything that comes from Brazil.Let's take a look at the US Dollar as markets start to prepare for next week's US CPI Report. Read More: German CPI confirmed at 2.0%, euro drifting, FOMC split over cuts Dollar Index 4H and 1H Analysis DXY 4H Chart close Dollar Index 4H Chart, July 10, 2025 – Source: TradingView Dollar Index 4H Chart, July 10, 2025 – Source: TradingView The US Dollar is currently breaking out from its 2025 Main descending channel after forming a bullish divergence with the last lows.There had been a theme of imbalanced short positioning against the Greenback, which had started to be less interesting after the continuous drop down in the index throughout the first half – Particularly as US Data keeps surprising higher, postponing FED Cuts (and creating debate as to when they will actually be able to cut).The breakout can be quite important for markets as flows markets may see some new trends in the second half that is just beginning.There had been an upside breakout in June therefore markets may need a convincing breakout to estimate that the downtrend is completely unvalidated. DXY 1H Chart close Dollar Index 1H Chart, July 10, 2025 – Source: TradingView Dollar Index 1H Chart, July 10, 2025 – Source: TradingView Looking closer at the Dollar Index breakout, Greenback buyers are using a bullish trendline from the lows to retest weekly highs (97.84).Short-term momentum is strong, just having breached the 1H MA 50, however, any movement will have to break out either on the upside or the downside as the past few days of up and down movement may lead to a simple consolidation in a 45 pip range (97.25 to 97.70).Levels of interest: Support ZonesCurrent Range Lows: 97.20Current Low Consolidation Support 97.00 Zone2025 Lows 96.50Resistance ZonesImmediate Pivot 97.60 to 97.80Current Resistance 98.00 Zone4H MA 200 98.20Main Resistance 99.20 to 99.40Safe Trades! Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.© {CURRENT_YEAR} OANDA Business Information & Services Inc. Perfect! Thanks! Love it! Haha Confused :/ Oush! Wow! Liked! × 💬 Did you like this content? Your feedback is very important! Liked! Perfect! Thanks! Love it! Haha Confused :/ Oush! Wow! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.