Dollar Hovers Near Pivotal Support as Event Risk Looms

The US Dollar (DXY) is trading just above pivotal support at 98.68/69, according to Michael Boutros, Sr. Technical Strategist for FOREX.com.

This level marks the August high-day close and the May low, making it a crucial threshold for the dollar's next move.

A break or daily close below this support would fuel the next leg of the July downtrend, with subsequent support objectives at 98.24 (yearly open) and 97.94 (61.8% retracement of the January rally).

On the other hand, a breach or daily close above the 38.2% retracement of the June decline at 99.80 would suggest a more significant low is in place, and a larger trend reversal is underway.