The US Dollar is likely to trade between 147.20 and 149.20. While there is a chance for the USD to lose value, strong support at 147.20 is expected to hold firm. Another support level is seen at 147.50. Recently, the USD peaked at 148.52 before dropping to 147.56. However, this decline did not show a significant increase in selling pressure. Resistance levels to watch are at 148.05 and 148.25.

Neutral Perspective

Over the next one to three weeks, the outlook is neutral. The expected trading range is still set between 147.20 and 149.20. It’s important to note that this analysis is not a recommendation to buy or sell. Thorough research is crucial. The markets discussed are informational and involve risks, including the risk of financial loss. The information contains forward-looking statements, and we cannot guarantee accuracy. While this article reflects the authors’ views, it does not represent the policies of the platform where it’s shared. The US Dollar is currently in a narrow trading range. This suggests a neutral market for the next few weeks. Key levels to monitor are the strong support at 147.20 and the resistance near 149.20. The lack of a clear trend means that making big predictions may not be profitable. Given this outlook, we recommend strategies that benefit from low volatility and time decay, such as options strategies. Selling options premium might be more effective than just buying or selling the currency and waiting for significant price moves.

Strategy Considerations

This outlook aligns with recent US Consumer Price Index data, which showed year-over-year inflation at 2.9%. This number was slightly below expectations and helps explain why the dollar hasn’t gained more strength after dropping from 148.52. The market appears to recognize that the Federal Reserve may not need to be more aggressive. Additionally, minutes from the Federal Reserve’s late July 2025 meeting showed a divided committee, making a sudden policy change unlikely in the near future. This uncertainty suggests that the dollar won’t break out significantly anytime soon. The market is essentially waiting for a stronger signal, which isn’t expected immediately. As a result, we are considering strategies like a short strangle or an iron condor. These strategies can profit if the currency remains between two specific prices. Similar price behavior occurred in summer 2023, when range-based strategies worked well before a new trend started. Current market data shows that implied volatility for dollar options has reached its lowest level in six months, indicating a period of calm. The minor resistance levels at 148.05 and 148.25 are important short-term points to monitor for potential price changes back into the range. Traders can use these levels to refine their entry points for range-based strategies. Setting alerts for movements toward the key boundaries of 147.20 or 149.20 is essential, as breaking these levels would invalidate our neutral viewpoint. Create your live VT Markets account and start trading now.

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