Dollar index holds above 38.2% Fib ahead of the US midterm elections

The Dollar Index (DXY) is holding above 96.04 (38.2% Fib R of 103.82/88.25).
US midterm elections are expected to produce a split Congress.
A Republican majority in both chambers could put a bid under the greenback.

Omkar Godbole FXStreet Contributor

The dollar index (DXY) is currently trading at 96.40, having defended the 38.2 percent Fibonacci support of 96.04 on Friday.

The greenback is trading in a sideways manner above the key Fib, likely due to caution ahead of the US midterm elections, which are expected to produce a split Congress - Democrats to take House and Republicans to retain the Senate.

The narrative in the market is that a Republican majority in both Chambers may embolden Trump to push for more fiscal stimulus. As a result, the greenback may pick up a bid if Republicans retain both House and the Senate.

On the other hand, the dollar may take a beating if the Democrats secure a majority in both Chambers and use their majority to investigate Trump's Russian ties and financial affairs.

Dollar Index Technical Levels

Dollar Index Spot

Overview:
    Last Price: 96.4
    Daily change: 5.0 pips
    Daily change: 0.0519%
    Daily Open: 96.35
Trends:
    Daily SMA20: 96.01
    Daily SMA50: 95.38
    Daily SMA100: 95.2
    Daily SMA200: 93.21
Levels:
    Daily High: 96.69
    Daily Low: 96.25
    Weekly High: 97.2
    Weekly Low: 95.99
    Monthly High: 97.2
    Monthly Low: 94.79
    Daily Fibonacci 38.2%: 96.42
    Daily Fibonacci 61.8%: 96.52
    Daily Pivot Point S1: 96.17
    Daily Pivot Point S2: 95.99
    Daily Pivot Point S3: 95.73
    Daily Pivot Point R1: 96.61
    Daily Pivot Point R2: 96.87
    Daily Pivot Point R3: 97.05

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD gathers strength to near 1.3550 as Fed hike bets fade, UK jobs data loom

The GBP/USD pair gains momentum to around 1.3550 during the early Asian trading hours. The US Dollar softens against the British Pound as cooler US inflation data have prompted traders to reduce bets on a US Federal Reserve rate hike. The UK employment report will be in the spotlight later on Tuesday.

EUR/USD flat lines below two-month high amid oil-driven inflation fears

The EUR/USD pair holds steady around the 1.1575-1.1580 region during the Asian session, and for now seems to have stalled the previous day's modest pullback from a two-month top. However, a modest US Dollar uptick warrants some caution before positioning for the resumption of the recent move higher from the 1.1350 area, or the July monthly swing low.

Gold drifts lower amid oil-driven inflation risks and US-Iran tensions

Gold attracts some sellers following a modest Asian session uptick, stalling a two-day move higher from the $4,300 neighborhood. The US Dollar builds on the overnight bounce from a two-month trough as inflation risks stemming from higher crude oil prices underpin prospects for at least one interest rate hike by the US Federal Reserve in 2026. Adding to this, the US-Iran standoff keeps the geopolitical risk premium in play and further underpins the safe-haven Greenback, which is seen exerting pressure on the precious metal.

Ripple and Stellar remain under bearish pressure as corrective declines cap upside

Ripple and Stellar remain under pressure as broader market uncertainty and weak technical momentum weigh on both altcoins. XRP is hovering below the key $1 mark on Tuesday while XLM continues its corrective decline below $0.157. Meanwhile, mixed derivatives and on-chain signals indicate cautious sentiment, leaving both cryptocurrencies vulnerable to further downside.

Silver’s new era: Supply deficits meet exploding industrial demand

Silver has experienced a wild ride in 2026, but The Silver Institute President and CEO Michael DiRienzo says investors shouldn’t let the volatility obscure a much bigger story: the underlying silver market remains remarkably strong.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.