Traders are obsessed with trends.
Yet history shows that markets only trend about 30% of the time — the remaining 70% is spent consolidating sideways. This is valid for almost every asset class since the dawn of time.
But consolidation don’t necessary translates to frustrating, choppy action.
In 2025, the US Dollar has been at the center of global debate.
After months of weakness driven by tariff fears, slower US growth, and fiscal uncertainty, a bottom seems to have formed since July — confirmed by the pre-FOMC retest in mid-September.
But bottom doesn’t always mean reversal.
The much-discussed de-dollarization trend, for now, looks overstated.
Despite with less conviction than before, the world still largely trades in USD.
Instead of a sharp recovery, the greenback appears stuck in a large range as traders await new catalysts — whether from tariff policy, an unexpected change to the Fed’s stance, or new global economic trends.
This could have important implications for FX markets in all currencies.
Let’s take a close look at the Dollar Index (DXY) to spot what the range looks like and its key levels of interest.
