US Dollar Index Stabilizes Below Key Fibonacci Retracement: Implications for Major Pairs

The US Dollar Index (DXY) has stabilized below the critical 61.8% Fibonacci retracement at 99.20, recovering early losses. This technical level is key for the dollar's immediate trajectory. Monetary policy divergence, especially between the Fed and other major central banks, remains a primary driver. Traders are watching economic data for clearer directional cues, with 99.20 on the DXY being a crucial pivot point.