The U.S. Dollar Index bounced slightly to 100.41 after testing support at 100.22, with the 50-SMA overhead at 100.77. RSI at 42.47 remains below the neutral 50 mark, indicating bearish pressure. The greenback’s sell-off followed Moody’s downgrade and skepticism over U.S. trade and debt policies. A break below 100 risks deeper losses toward 99.80, as investor confidence in U.S. fiscal management continues to erode.
USD/CAD hovered near 1.3948, testing support around 1.3938 with the 50-SMA offering nearby support. RSI at 48.33 shows weakening bullish momentum. Despite oil strength potentially weighing on USD/CAD, the dollar’s struggle continues as markets absorb the credit downgrade and looming debt concerns. Sellers are active below the 1.3950–1.3980 resistance zone, keeping the pair capped. A break below the 50-SMA could signal deeper retracement.
