In my opinion DXY Index appears to be at an inflection point.
It's not hard to account for the USD's recent strength given the significant rise in US Treasury yields over the past 5 months relative to other investing jurisdictions as well as surging commodity prices which more often than not require USD payment.
Interest rates differentials do matter, attract investments and suggest a safe haven of sorts. Witness US 10 year yields at 3.05% vs 1.08% to those in Germany.
(Interestingly UST 10 year yields fell today for the first time in several weeks while equity markets swooned.)
Currently DXY has been in a well defined channel since 2008 and would appear to be at a triple top (going back to 2016) as well as an AB = CD extension.
Within this channel there have been two significant quadrants which we have labeled A and B.
Do we now enter quadrant C or pause and fall back ?
Too early to tell. If interest rates are ahead of themselves, the Ukraine situation heads toward resolution and equity markets stabilize then I would expect to see some DXY weakness going forward.
This is educational not investment advice.
Do your own due diligence while watching the bigger picture and review world events as they evolve around you.
If this index falls appreciably from here (i.e. fails to breach and hold the 104 area, it may have significant implications for some commodity markets most notably Gold and Silver prices.
Good Luck and thanks for reading.
Hopefully you found it this useful.
S.
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Note this is a weekly chart
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Interesestingly enough we have on a 4 hour chart both bearish Anti-Gartley and Gartley harmonic patterns in play ...