The DXY index has dropped below crucial exponential moving averages (EMAs) following the release of July’s Consumer Price Index (CPI). Traders are now eyeing the 97.50 support level. The market anticipates that dovish views on the Federal Reserve will influence pairs like GBP/USD and EUR/USD, bringing them closer to key resistance points. This data-driven sentiment creates opportunities for traders to capitalize on shifting trends in the forex markets. Understanding these developments will empower investors to anticipate movements and craft effective trading strategies in an evolving economic environment.