The US Dollar is trading near a key resistance zone as markets remain cautious ahead of the ongoing US–China discussions. Broader financial markets are relatively quiet on the FX side, with major currency pairs still moving within established ranges despite stronger US inflation data.

Equity markets and US yields continue to edge higher, supported by optimism surrounding the US–China meeting, which is expected to improve trade relations between the two economies. However, any negative surprise from the talks could quickly shift sentiment and trigger risk-off flows across markets.

From a technical perspective, the Dollar Index (DXY) has reached a significant resistance level around 98.28, marking the upper boundary of a contracting range. This zone is considered important, with price action showing potential signs of exhaustion at the top.

There is also a possibility that the current move represents the completion of a sub-wave within a broader corrective structure, suggesting that the dollar may be approaching a potential reversal area in the short term.

Traders will be closely watching whether the dollar can break above resistance or face rejection, which could open the door for a pullback across major FX pairs.