Referenced assets
The US Dollar has corrected quite severely since the announcement of the two-week ceasefire, and not without good cause.
The infamous Petrodollar trade has gripped financial markets on all sides since the beginning of the US-Iran-Israel conflict, particularly amid the rise in Crude Oil to 4-year highs.
The USD has historically held a decent correlation with Black Gold, but the latest wave of panic during the conflict re-strengthened the bonds between the two financial assets, rowing the same boat.
The Petrodollar trade – Oil and US Dollar Correlation. Source: TradingView. April 21, 2026
With Markets ever so ecstatic about a US-Iran deal and the fact that the war is not extending much longer than originally priced, this led to an explosion to all-time highs in Stock Markets, a swift drop in Oil prices, and, consequently, a tumble in the US Dollar.
This came shortly after a daily double top in the global reserve currency, which was nice enough to mark the bearish pattern indicating a turn in how Markets viewed the war.
But after a 2.50% correction, the US Dollar has seemingly done correcting. So if the Dollar forecasted the truce, could it now be forecasting tougher times ahead?
The issue with the narrative is that the Ceasefire is ending tomorrow, and a US delegation, including Vice President J.D. Vance, is struggling to coordinate its departure amid mixed messaging from the Iranian side.
As the US President said, he does not want to extend the ceasefire, and without a deal, we're going straight back to the bombs. So FX Markets could be feeling the turn.
Current Session's FX Performance – Courtesy of Finviz. April 21, 2026
The US Dollar is leading all other FX currencies, but the Kiwi Dollar is supported by a NZ CPI beat and the repricing for a hike at the upcoming meeting.
While the changes are small, it is now the second consecutive day of a Greenback rebound, so traders will have to pay close attention.
We will look at the Dollar Index, EUR/USD, and AUD/USD to assess the current state of the Market and where to look next.
Dollar Index 4H Chart
Dollar Index Daily Chart, April 21, 2026 – Source: TradingView
The US Dollar has now attempted, and failed to break the 98.00 Major support for the third time during the morning action.
This levels hold right in the middle of its larger timeframe range which implies a general lack of conviction from bears that the Dollar should already erase its War gains.
Now testing its 4H 50-period MA, a key technical indicator for the prior coming, FX markets will be facing a test:
- Breaking above it (98.40) would hint at a bullish rebound ahead, which confirms above 98.70 (if the War picks up again)
- On the other hand, rejecting 98.00 continues the bearish path for the US Dollar
Levels of interest for the Dollar Index:
Resistance Levels
- 98.335 4H 50-period MA (bullish above)
- 98.50 to 98.70 War Pivot
- 99.40 to 99.50 Resistance
- Initial War Spike 99.68
- Weekly range highs 100.00
- 100.00 to 100.50 Main Resistance Zone
- War Highs 100.544
Support Levels
- 98.00 2025 Support (testing – bearish below)
- Support 97.40 to 97.60
- 2025 Lows 96.40 to 96.80 Support
AUD/USD 4H Chart and Technical Levels
AUD/USD 4H Chart, April 21, 2026 – Source: TradingView
AUD/USD is taking somewhat of a lead, bouncing from the test of its upward channel bottom in recent action.
A break above 0.71860 (March Highs) would continue the bullish path ahead and if the channel was to hold (implying peace), a rally to 0.7250 could occur.
Nevertheless, the rebound attempt seems for now quite shy, hence the importance of the March high level. Failing to reject it could lead to a break of the bull channel.
Levels of interest for AUD/USD:
Resistance Levels
- 2023 Highs from 0.7140 to 0.7160 Resistance (broken)
- 0.71867 March highs
- June 2022 Extremes 0.72 to 0.7230
- Channel highs 0.7250
Support Levels
- 0.7150 Channel lows
- 4H 50-period MA - 0.71280
- 0.6970 - 0.70 Major Pivot
- 0.69 to 0.6935 Early Feb Support
- 0.68340 War lows
EUR/USD 4H Chart and Technical Levels
EUR/USD 4H Chart, April 21, 2026 – Source: TradingView
EUR/USD is showing sharply similar signs as the Dollar Index (naturally, in reverse), testing its 4H 50-period MA this time as support.
Bears did take the upper hand at the beginning of the week, rejecting sharply the test of the 1.1850 resistance and now trading close to 1,000 pips below.
Breaking below the MA hints at further downside, with confirmation below 1.17200.
Levels to place on your EUR/USD charts:
Resistance Levels
- Resistance Zone around 1.18 (+/- 150 pips)
- 1.1830 June 2025 highs
- 1.1850 to 1.1860 Recent Test
- Sep 2021 Highs – Resistance 1.19 to 1.1950 Zone
Support Levels
- 1.1760 4H 50-period MA
- 1.17 to 1.1720 March Pivot
- Rebound highs 1.17200 (bearish below)
- Major Pivot 1.16250 to 1.16350
- 1.1540 to 1.1570 War Support
- 1.1475 to 1.15 November Support
- War lows 1.1410
Safe Trades and keep a close eye on Ceasefire news!
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