The US Dollar really went on a run last week after having broken out of its early 2026 downward trend.
Markets have been looking for clarity, and clarity they could not find. Geopolitics seems to be advancing with the ongoing diplomatic exchanges in Geneva, which began in the mid-Swiss afternoon and should resume soon after a 3-hour break.
Except for a quick awakening in yesterday’s session (and the Japanese Yen, often going onto its own adventures as of late), Forex Markets have remained desperately muted in the past weeks of action, with most Major pairs holding a 1,000 pip range – and that’s being generous!
As uncertainty reigns, traders can find ranges to play around with tight stops, to remain active and see even more advantage in taking quick trades while waiting for bigger opportunities.
Even the Aussie Dollar, which sent another beat on its CPI earlier this week, couldn’t find the momentum to extend its lead.
Everyone is looking at the same currency:
The US Dollar. What will happen to it, and what will be the outcomes of the US-Iran talks?
It seems that a breakout could be on the way with the Dollar bouncing right as I conclude this piece.
Markets will learn more soon, which should lead to significant breakouts across the board.
We’ll explore a few scenarios for upcoming breakouts in an in-depth technical analysis of DXY.
