DXY. Risks skewed to the upside for now – OCBC

USD traded better bid overnight. The sell-off in European equities overnight and most Asian equities also weighed on sentiments. DXY was last at 98.83 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Daily momentum turned mild bullish

"This week, there are plenty of tier-1 data to consider, including conference board consumer confidence, JOLTS job openings (Tuesday); ADP employment, 2Q GDP (Wednesday); FOMC, core PCE (Thursday); NFP, ISM manufacturing (Friday).

"Globally, there is BoJ, BoC and MAS policy decision and 1 Aug tariff deadline. Additionally, there may also be month-end flows distorting price action."

"Daily momentum turned mild bullish while RSI rose. Risks skewed to the upside for now. Resistance at 99.60 (23.6% fibo retracement of 2025 high to low), 100 levels. Support at 97.80 (21 DMA), 97 and 96.40 levels (2025 low)."