US Dollar Index (DXY) – 4H Technical OutlookUS Dollar Index (DXY) – 4H Technical Outlook
DXY has shown a clean bullish structure shift, breaking above previous highs and confirming multiple Breaks of Structure (BOS) around the 99.00–99.20 zone.
Currently, price is trading at 99.33, inside the premium zone, and testing the weak high area near 99.40–99.60.
📊 Market Structure:
The structure has turned bullish after a confirmed Change of Character (CHoCH) and a clean BOS above 98.80.
The equilibrium zone (98.40–98.60) previously acted as strong demand and was respected multiple times.
Price is now in a premium range, suggesting potential for a short-term pullback before further continuation.
🎯 Key Levels:
Premium / Supply Zone: 99.40–99.60 (possible liquidity grab or rejection zone)
Equilibrium / Demand Zone: 98.40–98.60 (ideal re-entry zone for continuation buys)
PDH (Previous Day High): 99.40
PDL (Previous Day Low): 98.60
🧭 Trade Scenarios:
Scenario 1 – Short-term Rejection:
If DXY rejects the 99.40–99.60 supply area, expect temporary USD weakness.
This could cause pairs like EUR/USD and GBP/USD to bounce up short-term.
Scenario 2 – Continuation Buy:
If price pulls back into 98.60 equilibrium zone and forms bullish confirmation, expect continuation toward 99.80–100.00.
Supported by the 50 EMA (blue) and 200 EMA (yellow) dynamic trend alignment.
📈 Momentum Indicators:
RSI/Stochastic are both near overbought zones, indicating short-term exhaustion.
A minor retracement is likely before continuation of the bullish leg.
Summary:
The DXY remains structurally bullish but short-term overextended.
Look for a pullback toward equilibrium (98.60 zone) before the next impulse move.
This macro setup supports short-term pullbacks on USD pairs, but the broader trend remains USD bullish
