DXY holds 106.50 gains but rally stalls on US tariff uncertainty

The US Dollar Index (DXY) maintained gains near 106.50 but momentum faded as doubts emerged over the implementation timeline of proposed tariffs. After rallying 1.2% last week on hawkish Fed expectations, the dollar's advance stalled as traders questioned whether trade measures would materialize as quickly as initially anticipated. Market positioning data shows leveraged funds remain net-long dollars, though conviction has weakened. The index faces resistance at 107.00, coinciding with the November 2024 high, while support sits at 106.20. EUR/USD traded sideways at 1.0520, while USD/JPY held 150.80 amid mixed risk sentiment. Aluminum prices rose 0.8% on supply concerns, providing slight headwinds for the dollar. Technical indicators suggest the DXY is overbought on daily timeframes, increasing the risk of a pullback toward 105.80. Traders await concrete policy announcements and this week's US economic data for fresh directional catalysts.