Morning Note: Dollar Climbs on Mideast Tensions; Oil Dips; Accenture Q3

Dollar Climbs as Mideast Tensions Escalate

The U.S. dollar was poised for its largest weekly gain in over a month on Friday, driven by heightened geopolitical tensions in the Middle East. Investors sought refuge in traditional safe-haven assets amid rising uncertainty, as the ongoing conflict between Israel and Iran showed no signs of easing. Market concerns intensified over the possibility of U.S. involvement, which could further destabilise the region.

The two nations have been locked in a week-long aerial confrontation, with Israel aiming to derail Iran’s nuclear program and undermine its domestic leadership. The White House stated that President Donald Trump is expected to decide within two weeks whether the U.S. will formally support Israel’s military actions.

(U.S Dollar Index Daily Chart, Source: Trading View)

From a technical analysis perspective, the U.S. Dollar Index has been in a bearish trend since January 2025, characterized by lower highs and lower lows. Recently, it retested the swap zone of 98.40 – 98.70 but was rejected, pushing the index lower. This valid bearish structure may potentially lead to further downside movement.

Oil Dips but Heads for Weekly Gain

Crude oil futures fell toward $74 per barrel on Friday during the Asian trading session but remained on track for a third consecutive weekly gain, driven by fears of supply disruptions amid escalating tensions in the Middle East. Israel intensified strikes on strategic and government sites in Tehran following reports of an Iranian missile hitting a major Israeli hospital. Market focus has also turned to the White House, where President Donald Trump is expected to decide within two weeks whether to launch direct military action against Iran.

Despite rising geopolitical risks, Iran continues to export oil, loading 2.2 million barrels per day so far this week, the highest in five weeks. Separately, oil prices found additional support from a sharp drop in U.S. crude inventories, with government data showing the largest weekly decline in a year.

(Crude Oil Futures Daily Chart, Source: Trading View)

From a technical analysis perspective, crude oil futures have been moving in a bullish trend since April 2025, as indicated by a series of higher highs and higher lows, along with a double bottom candlestick pattern that suggests strong bullish momentum. Recently, it has broken above the order block of 71.50 – 72.50, which may potentially continue to move higher to retest the resistance zone of 78.20 – 79.20.

Accenture Set for Q3 Revenue Rise

Accenture plc (ACN) is set to report its fiscal third-quarter 2025 results today, before the market opens. The estimate projects revenue at $17.2 billion, up 4.5% from the same period last year. Consulting revenue is expected to reach $8.7 billion, reflecting a 2.4% year-over-year increase, while Managed Services revenue is estimated at $8.5 billion, up 6.1% from the prior year.

(Accenture Daily Price Chart, Source: Trading View)

From a technical analysis perspective, Accenture’s share price has been in a bullish trend since early April 2025, after rebounding from the support zone of 274 – 279. However, it encountered rejection at the resistance zone of 320 – 325, which pushed the price lower. It is currently retesting the order block at 302 – 306. A break below this order block could lead to a further decline toward the support zone. Conversely, if the price finds support within this order block, it may resume its bullish momentum and move higher.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.