The US Dollar (USD) may rise to 7.2880 before stabilising, with major resistance at 7.2980 appearing unlikely. A drop below 7.2500 would suggest a shift to a range trading phase.
Recently, USD fell to 7.2532 but then rebounded, closing at 7.2814. Expect a potential rise to 7.2880 today, with support levels set at 7.2750 and 7.2640.
Momentum And Key Levels
While upward momentum has decreased, a breach of 7.2500 would signal a trading range. As long as this level holds, there remains a possibility for USD to reach 7.2980.
So far, we’re seeing an effort by price action to revisit higher ground, suggesting that buyers haven’t entirely disengaged. The USD recovery from 7.2532 to 7.2814, while not explosive, came with enough volume and consistency to imply that short-term positioning has some support behind it. Resistance is observed at 7.2880, with a secondary level at 7.2980, which at present appears unlikely to be challenged unless buying momentum surprises later in the week.
The sharp bounce back above 7.2750, after briefly dipping, underlines how that level is establishing itself as a pivot for now. Below that, 7.2640 acts as a support floor, but the key psychological level remains 7.2500. Should price retreat and close beneath it, it introduces a different rhythm—less directional, more rotational. Some may view that as consolidation; in reality, it reflects traders resetting expectations.
Trader Sentiment And Risk Outlook
From our perspective, caution should be exercised around any false breakouts. A premature move above 7.2880 without sufficient volume may entice speculative entries, but that would come with risk given the ceiling at 7.2980. Conversely, any pullback holding above 7.2750 keeps the scenario aligned with mild appreciation, at least in the near term.
Forward-looking traders would be wise to prepare for increasingly narrower intraday ranges unless a macro driver emerges. Momentum has eased, which doesn’t negate bullish continuation, but it does require participants to recalibrate both positioning and risk levels. With the 7.2500 area acting as an inflection point, eyes will remain fixed on whether that mark withstands the week’s tests.
As the current setup unfolds, it’s less about chasing and more about leaning into defined levels, awaiting clarity between bulls and bears. The dance around resistance and support has rewarded patience recently—and this phase doesn’t appear to be changing soon.
