The US Dollar Index (DXY) broke above the shelf of previous lows in July, causing major currencies worldwide to struggle. The Canadian dollar remained trapped below a downtrend line and was unable to rise despite briefly entering the overbought zone, while commodity-based currencies like the Australian and New Zealand dollars also declined. The DXY is currently facing possible resistance at the USD 103-104 level, and a breakout could lead to more selling pressure on other global currencies and create stiff headwinds for global risk assets in the short term.
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