DXY- USD's drop should be over soon

Keep in mind this is a long-term view looking at a weekly chart with the month of December just starting (Typically a weak USD month, so spikes in support are probable)

Since June 2021, the DXY index has started a bullish trend, with this trend becoming parabolic at the beginning of 2022.
Finally, after a high near the 115 figure, the index has started to correct and now is trading at 104.50, almost 10% under the high.

However, we should be very careful with shorting USD from now on, because, fundamentally, nothing has changed.

Technically speaking, as we can see from the main chart of the idea, DXY is now trading in extremely strong support given by the 2017 high, 2020 high, and also the high of 2022 high, just before this important break up.

Zooming in to the daily chart:


We can see, indeed that this is a zone, with the high from 2017 at 103.80 and the high of 2020 at 103, so around 1%.
Adding to this, the trend line started in min 2021 is also in this zone...
All this confluence of both fundamental/economical factors and technical ones should be a strong warning for USD bears and, although in December we can have spikes in this zone if you are a medium-term trader you should use this as a good buying opportunity for USD.

Best regards!
Mihai Iacob