Dollar Index-Stops At Gap Resistance

After just a temporary setback in stocks and a brief move higher in the dollar earlier this week, we’re once again seeing a strong reversal across the board. This comes after Donald Trump extended the July 9th tariff deadline to August 1st, giving more time for trade negotiations with various countries. That brought some optimism back into the markets, and if stocks continue to gain, the dollar index is likely to remain in its downtrend.

In fact, the dollar index stopped right at the June 26th gap near the 97.70 resistance level. We believe that the corrective price action from July 1st could now be coming to an end, and the market may resume lower—especially if we get a breakout below the corrective channel support near 97.

GH