Dollar jumps broadly following US trade tariffs announcement

The dollar index surged at the open on Monday, climbing 1.1% as trade war fears intensified following President Donald Trump’s decision to impose tariffs on imports from Canada, Mexico, and China.

In response, Canada and Mexico swiftly announced countermeasures, while China signaled its intention to seek intervention from the World Trade Organization.

Although the dollar pulled back slightly from its session high, the near-term outlook remains strong, supported by improving technical indicators. Momentum turned positive, the RSI moved above the neutral 50 level, and moving averages shifted into a fully bullish setup.

Market sentiment favors further dollar gains amid heightened uncertainty over the economic fallout of a potential trade war, which continues to drive risk aversion.

Res: 109.73; 110.00; 110.50; 111.06
Sup: 108.61; 108.40; 107.89; 107.59