DXY Reaches My Target – Why I'm Still Bullish

In my previous DXY analysis, I explained why I was bullish and argued that the U.S. Dollar Index would break above the 100.50 resistance zone and extend its rally toward at least 101.50.

That is exactly what happened.

The index broke resistance, accelerated higher, and eventually printed a high around 101.80, validating the bullish scenario.

Since reaching that high, DXY has entered a correction.

However, when we look closely at the structure of this pullback, it appears corrective rather than impulsive. Instead of signaling a trend reversal, the price is developing what looks like a bullish flag—one of the most common continuation patterns.

If this interpretation proves correct, the current correction should eventually give way to another leg higher.

Using the measured move of the bullish flag, the next upside objective comes around the 104 zone, which also coincides with an important horizontal resistance level. That confluence makes it a logical area where the market could pause or attract profit-taking.

Trading View

My outlook remains bullish.

As long as the price holds above the 100.50 support zone, I continue to favor buying dips rather than selling rallies.

For me, the current pullback is a correction inside an established uptrend—not the beginning of a bearish reversal.

Until the market proves otherwise, I expect the U.S. Dollar Index to resume its advance, with the 104 area remaining my primary upside target. 🚀