The US Dollar is anticipated to trade between 7.2430 and 7.3700. The possibility of a dip below 7.2700 exists, but the major support at 7.2430 is deemed unlikely to be reached currently.
In the past 24 hours, the US Dollar weakened but did not reach the predicted lower support levels. The decline stopped at 7.2788, with resistance situated at 7.3150 and 7.3350.
Dollar Outlook
Over a span of one to three weeks, the outlook for the US Dollar is mixed due to recent volatility. The prevailing expectation is for trading to continue within the identified range.
Readers are advised to conduct comprehensive research before making any investment decisions due to the inherent risks and uncertainties in the market. The information provided is meant purely for informational purposes.
So far, we’ve seen the US Dollar edge lower, although the downward pressure wasn’t enough to challenge the more resilient thresholds. The pullback found a floor at 7.2788, which is still above the first major setback line of interest. Two resistance points have been outlined—7.3150 followed by 7.3350—which would present the most likely hurdles if momentum attempts a short-term climb. We’re presently seeing momentum engage modest corrections rather than anything extended.
Given recent range-bound conditions and price action that has yet to breach either end firmly, short-term derivatives strategies should maintain discipline around pre-defined triggers. We’re seeing a distinct reluctance for spot movement to drift meaningfully below 7.2700, but that floor remains vulnerable should risk events reprice expectations.
Support near 7.2430 hasn’t been revisited, which reinforces its role in guiding stop placement. Risk management in this part of the curve matters more than ever; it’s ill-advised to position without acknowledging the weight this level still holds in the market’s short-term memory.
Trading Strategies
From our vantage point over the coming one to three weeks, macro conditions are unlikely to settle enough for a clean directional bias. It would be unwise to lean into conviction trades until volatility narrows or a catalyst arrives. Until then, mean-reversion setups and delta-neutral strategies remain preferable, particularly those that can tolerate the churn within the 7.24–7.37 corridor without relying heavily on breakout conviction.
Given resistance above remains structurally intact so far, any implied volatility expansion should be approached with caution. Skew is leaning towards apprehension rather than confidence. That calls for embedded optionality where possible, using instruments that won’t demand high directional precision while still capturing intraday spikes or retracements.
This environment doesn’t reward fast trading, nor does it validate heavy leverage on directional plays. We’re seeing clear evidence of indecision priced across maturities, echoed by the mixed tones in spot.
