DXY: Caution near 100 as rally looks stretched – DBS

DBS analyst Philip Wee argues that the recent surge in the Dollar Index (DXY) toward the 100 level looks overstretched after a 2% jump in two sessions. He notes strong technical resistance around 100 and highlights that the DXY has largely respected a 96–100.4 range since mid‑2025, despite multiple geopolitical and policy shocks.

Dollar Index rally faces technical headwinds

"The aggressive flight to safety into the USD is beginning to look overstretched following a significant 2% surge in the DXY Index over the past two sessions."

"After testing a high of 99.7 yesterday, the greenback encountered stiff technical resistance near the psychological 100 level, prompting investors to dial back their long positions as the initial shock of the Iran strikes began to digest."

"Despite the recent volatility, the DXY Index remains remarkably consistent with its long-term behaviour."

"Looking at the broader technical picture since mid-2025, the DXY has kept to a steady trading range between 96 and 100.4."

"This range has held firm despite a series of significant global events, including the French budget deadlock crisis, Japan’s Sanaenomics and snap election, and the US Supreme Court striking down Trump’s tariffs under IEEPA."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)