Dollar retreats from 100.12 resistance amid risk-on rebound [Video]

Gregor Horvat Wavetraders

Global markets started the week on a strong footing as risk-on sentiment makes a comeback, supported by encouraging signs that the U.S. government may finally be moving toward ending the shutdown. Stocks rebounded firmly on Friday and continue to advance, while commodity currencies are gaining strength and the U.S. dollar is retreating across the board. The Dollar Index (DXY) has fallen from the 100.12 resistance area, highlighting a potential shift in market momentum. A sustained break below 99.40 trendline support would confirm a broader top, paving the way for a move toward the October 6 gap at 97.70. For now, traders appear to be rotating out of defensive dollar positions and back into higher-risk assets, reflecting renewed optimism in global growth and liquidity conditions.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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