The US Dollar Index (DXY) fluctuated around the 103.00 level on Tuesday, as bulls attempted to sustain Friday’s gains. Sentiment was initially buoyed by comments from the US Trade Representative regarding ongoing tariff negotiations with approximately 50 countries. Key resistance for the DXY is observed near 103.70, with support around 102.70. However, renewed selling pressure emerged following the confirmation of additional US tariffs on Chinese goods, scheduled to take effect on April 9th.
USTR Greer indicated active engagement with numerous countries regarding tariff negotiations, fostering optimism regarding trade momentum and potential market access expansion for agriculture. Despite this engagement, China’s resistance to negotiations persists, exacerbating tensions between Washington and Beijing. In response to China’s 34% duties on US exports, the US announced a 50% tariff increase on Chinese goods, according to Press Secretary Karoline Leavitt. Treasury Secretary Scott Bessent confirmed President Trump’s direct involvement in future discussions, while European Commission President von der Leyen cautioned against potential retaliatory measures in the absence of a resolution.
Technical analysis reveals the DXY trading within a tight range near 103.00, indicative of market caution. The Moving Average Convergence Divergence (MACD) signals a buy, while the Relative Strength Index (RSI) at 41.87 and Bull Bear Power at -0.98 suggest a neutral outlook. Nevertheless, bearish signals are evident from the downward-sloping 20-day, 100-day, and 200-day Simple Moving Averages (SMA), further reinforced by the 10-day Exponential Moving Average (EMA) and SMA.
