Dollar Slips as Markets Bet on US-Iran Breakthrough
The US Dollar Index (DXY) has slipped below 100 as markets anticipate a potential breakthrough in US-Iran negotiations, with Qatar indicating that a new draft agreement is being finalized.
Despite ongoing fluctuations in headlines surrounding the talks and expectations of a Federal Reserve rate hike in September, market sentiment remains risk-on during the summer trading season.
The Dow Jones has reached fresh record highs above 53,300, while the S&P 500 tests record highs near 7,630. The Nasdaq has rebounded above 29,000 and continues to push upward.
In terms of the EUR/USD, it remains below the 1.1560 resistance level but has rebounded from a descending trendline connecting lower lows since August 2025.
A breakout above 1.1560 would expose upside targets including the 50% Fibonacci retracement at 1.1590 and the 61.8% retracement at 1.1650, while a breakdown below 1.1460-1.1420 support zone could lead to yearly lows near 1.1300-1.1280.