USD Index is still below its wide range and drifting

We invite you to read Bruno’s B.E.S.T. View May issue (written May 1st).

On March 3, 2025, at 106.66, we mentioned the rumours about a “Mar-a-Lago” accord to devalue the US dollar currency, reminiscent of the Plaza Accord. The purpose is not to argue if it makes sense, just to “read” what the market suggests with its price behaviour. From 106.66, the US dollar index declined toward the cloud(104-103) around mid-March and was knocked down from “Liberation Day” onward below the previous major support of 100 to spike near 97.92. The recent minor rebound remained below the key level of 100.50 ( 38% Fibonacci retracement of 104.71-97.90). Some market participants would see a rise above that level as a sign of trend change. At least, above 100.50, the declining downtrend would leave the stage to be replaced by a sideways consolidation, preceding the arrival
of higher Lows and Highs characteristics of a[…]