$DXY is just below its 50 line and above the Major structure zone near 97 and that could be a zone to start looking for counter USD setups.
But.. During the last two trading days (last week), $DXY was able to climb above a minor downtrend line and close above it, possibly breaking out of the pattern (continuation pattern).
Another signal is that $DXY is still above its 200 line after the latest false break.
So to sum it up we have three reasons to be (61.8-78.6 retracement, Major structure and the 50 line) and 2 reasons to be (Price above 200 line, breakout)
$DXY is being squeezed between its 200 line and its 50 line in a similar way that we recently saw $SPY being squeezed (just before AUG breakdown).
A close above 97.5 could lead to a rally towards 100 - That's the scenario.
The stop loss must be at least below 95.
If the price will remain below 97, it will allow to short it with stop loss above 98.
See the potential R/R for each scenario in the chart (for initial target zones)
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