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The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, trades almost flat around 106.70 at the time of writing on Tuesday while other asset classes are facing big moves. Investors are piling into safe-haven bonds, with US yields dropping lower. Meanwhile, equities<\/a> are going down with negative performances in all major indices across Asia and Europe, also including US futures.\u00a0<\/p>\n The rout comes after the US President Donald Trump administration gave more details on its plan to toughen semiconductor restrictions over China. In addition, the United States<\/a> (US) is asking allied countries to impose tariffs as well on China in order to corner the country. Trump wants to slow down Chinese technological development, Bloomberg reports.\u00a0\u00a0<\/p>\n The US economic calendar is starting to bear some interesting data points. The Consumer Confidence for February and the Richmond and Dallas Fed<\/a> Manufacturing indexes are all leading sentiment indicators<\/a> that could give some insights about the current US activity. Later in the day, Fed Vice Chair for Supervision Michael Barr, Richmond Fed President Tom Barkin and Dallas Fed President Lorie Logan are set to speak.<\/p>\n The US Dollar Index<\/a> (DXY) is clearly not included in traders’ decisions on the back of comments from US President Donald Trump or his administration. Moves are seen in equities, Gold<\/a>, and Bonds, while the DXY has become too much of a risk and has been left aside by traders for now.<\/p>\n On the upside, the 100-day Simple Moving Average (SMA) could limit bulls buying the Greenback near 106.68. From there, the next leg could go up to 107.35, a pivotal support from December 2024 and January 2025. In case US yields recover and head higher again, even 107.97 (55-day SMA) could be tested.\u00a0<\/p>\n On the downside, the 106.52 (April 16, 2024, high) level has seen a false break for now. However, that does mean quite a few stops might have been triggered in the markets, with a few bulls having been washed out of their long US Dollar positions. Another leg lower might be needed to entice those Dollar bulls to reenter at lower levels, near 105.89 or even 105.33.<\/p>\nDaily digest market movers: As if it is not there<\/strong><\/h2>\n
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US Dollar Index Technical Analysis: Wind still<\/strong><\/h2>\n