• The US Dollar extends its reversal below 100.00 amid hopes of a swift end to the Iran war.
• Trump affirmed on Tuesday that the US will exit Iran and that the Strait of Hormuz will reopen "automatically".
• The US Dollar Index shows a potential Double Top formation at 100.60.
  

The US Dollar (USD) is trading lower against its main peers on Wednesday, as Trump’s comments hinting at a swift end to the war in Iran have boosted investors’ appetite for risk. The Dollar Index (DXY), which measures the value of the US Dollar against a basket of six currencies, has lost about 1% in the last two days, returning to levels near 99.50 from weekly highs at the 100.60 area.

US President Trump rattled markets on Tuesday, affirming that the US army would exit Iran in the next two or three weeks, whether there is a deal or not. He also said that Tehran will be unable to build a nuclear weapon “for years”, and that the Strait of Hormuz will open “automatically” after the US exit.

Technical Analysis

The Dollar Index Spot is trading at 99.62 at the time of writing. The near-term tone is neutral with a bearish tilt. A potential double top at 100.60 and Tuesday's impulsive reversal suggest a trend shift, which would be confirmed with a successful break of the bullish trendline support at $99.45.

Technical indicators show a cooling momentum. The Relative Strength Index (RSI) retreats from overbought readings above 70 to the high-30s, suggesting fading upside pressure. The Moving Average Convergence Divergence (MACD) indicator has turned lower, with the line slipping below the signal, providing a further bearish sign.

A break below the mentioned trendline at 99.45 would expose the support level at the 98.90 area, the neckline of a potential Double Top at 100.60. The Double Top's measured target is the early March lows, in the 97.80 area.

Immediate resistance stands at the 99.90 area, so far closing the path towards the mentioned top, at 100.62.

(The technical analysis of this story was written with the help of an AI tool.)