DXY: Open gap at 97.70 can get filled [Video]

Gregor Horvat Wavetraders

Stocks are holding up quite well after Trump said he expects to reach a “very strong” and “fair” trade deal with Chinese President Xi Jinping at the upcoming APEC summit in South Korea. These are just "words" for now, and no one really knows what the outcome of any negotiations will be, so it’s still too soon to speculate. I wouldn’t be surprised if stocks stay sideways for that reason.

Looking at the Dollar Index, as mentioned yesterday, we’re still tracking an incomplete bearish trend that could, in my opinion, resume lower toward the unfilled gap at 97.70 this week. Ideally, if that level breaks, we could see an even deeper decline toward the September 2025 lows. So on other side of that trend, then we can expect Swiss franc, euro, and pound to gain more upside, while Japanese Yen, which lost some ground today as Takaichi won the key PM vote , could also strengthen again later on.

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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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