DXY Pulls Back from 100 – A Healthy Correction, Not a Reversal

1. What Happened Since Last Week
In last week’s DXY analysis, I warned that although the U.S. Dollar Index remains in a broader uptrend, the 100.00 level represents both a strong technical and psychological resistance that could trigger a short-term retracement.

That scenario played out almost perfectly — after a brief spike above 100, DXY rolled over and is now trading near 99.70.

2. Market Context
The pullback so far looks orderly, not impulsive, suggesting that this move is a correction within an ongoing bullish structure, rather than the start of a major reversal. The market is simply digesting gains after a move higher.

3. Technical Outlook
The area between 99.00 and 99.20 stands out as a key confluence support zone, combining horizontal structure with the up trend line. This is where I expect buyers to reemerge if the index continues to drift lower.

4. Trading Plan
If DXY dips into 99.00–99.20, I’ll look for signs of USD strength resuming — specifically by considering short setups on GBP/USD and EUR/USD.

5. Conclusion
The dollar remains in an uptrend, and this pullback appears to be healthy, not bearish. As long as DXY holds above 99.00, the broader bullish bias remains intact, and traders should prepare for a possible rebound in the next sessions. 💵