Technical Analysis: The Dollar (DXY) Will Likely Continue To Weaken
The Dollar (DXY) continues to weaken. After reaching a high of $110 in early 2025, it has fallen 12% to $97.00. This is the biggest fall since 1973. The culprit is a loss in confidence in the United States as a stable place for money. Trade wars, the possibility of the next Federal Reserve chair being the presidents patsy, a new trade bill that will increase the U.S. debt by at least $3.8 trillion are all reasons. Other countries are starting to realize that they rely too heavily on the United States, the U.S. Dollar and U.S. treasuries. Essentially they realize they need to diversify their holdings.
Overall, that is bad news for the U.S. Dollar (DXY).
Look for the Dollar to continue to weaken in 2025-26. The first big test will be at $88.75, a long-term trend line going back to 2009 (the Financial Crisis).
