Post #16053

DXY Pulls Back as Safe-Haven Bid Fades DXY failed to hold the 100.5 highs and is now pulling back into the 99.5 support zone — a key level to watch in the near-term. Despite strong U.S. data (Retail Sales + ADP), price couldn’t extend higher, which signals fading momentum on the safe-haven bid. The move lower comes as Middle East tensions show signs of stabilization, reducing demand for the dollar. That said, price is still holding within a broader bullish structure for now — this is more of a pullback than a confirmed reversal unless 99.5 breaks clean. Above, 100.5 remains the clear resistance and recent high. A reclaim puts continuation back on the table. Below, a break of 99.5 opens the door for a deeper unwind of the war premium. Fundamentally, this is a transition phase — shifting from geopolitics driving flows to central banks taking back control. If tensions ease further, expect rate expectations and inflation narratives to dictate the next move. - Alan