Trend Bias: Bullish as long as price stays above 97.742
โ If DXY breaks above 98.200 (resistance zone), momentum should strengthen toward the 98.737 target. โ If price falls below 97.742, the signal is invalidated and may retest 97.600 support zone.
DXY DXY Bullish Retest Zone Forming for Breakout ๐๐ข
Technical Analysis:
๐น Structure: The DXY (US Dollar Index) has formed a bullish flag pattern after a strong impulsive move upward, followed by a correction. The price broke out above the resistance zone (~99.50), but faced immediate rejection near the 100.50 level, creating a short-term pullback.
๐น Support Zone: Key support is holding at 98.435, a historically reactive area. Price action shows signs of a potential retest pattern, suggesting bulls may reclaim control after a consolidation period in this zone (marked by the boxed range and bullish rejection wicks).
๐น Bullish Signals:
๐ข Higher lows highlighted by orange circles indicate a consistent upward trend.
๐ฉ Strong bullish candle on July 25โ29 broke structure and confirmed momentum shift.
โ Possible inverse head & shoulders forming in the consolidation range (black box).
๐น Target: If buyers defend the support zone and reclaim bullish momentum, the projected target is around 100.879, aligning with previous resistance and measured move projection.
๐น Bearish Scenario: If price fails to hold 98.435 support, further downside towards 97.50 could be expected.
Summary: ๐ Watch for a breakout from the current consolidation range. A confirmed bullish structure above 99.50 with volume could trigger a run toward 100.879. Risk management is key as the zone is still under test.
DXY Signal: SELL
