U.S. Dollar Index futures (USDIDX) are down more than 0.9% on Tuesday, sliding below the 96 level and nearing their lowest point in almost four years. The move marks the dollar’s sharpest four-day losing streak since April 2025, when markets were pricing the negative economic impact of trade tariffs on the U.S. economy.
- Today’s Conference Board consumer sentiment data surprised to the downside, printing at the weakest level since 2014. Pressure on the dollar has also increased amid speculation that the U.S. Treasury may be signaling support for the Japanese yen.
- As a result, the dollar has weakened notably against the yen, the euro, the pound, and the Swiss franc. Geopolitical tensions and the economic disputes the new U.S. administration is entering into, both with Europe and with the competing BRICS bloc, are adding fresh questions around America’s fiscal outlook. The Fed delivers its interest-rate decision tomorrow, with the base-case expectation being no change.
USDIDX (D1 timeframe)
Looking at the USDIDX chart, which measures the dollar’s strength against a basket of major global currencies, the current downswing is almost a 1:1 mirror of the 2022–2023 decline in terms of magnitude. If that 1:1 correction were to repeat, the 95 area would typically be a level where at least a technical bounce becomes likely. For now, however, sellers remain firmly in control. The RSI has fallen below 25, signaling extremely oversold conditions not seen in years.

Source: xStation5
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