DXY: Key Reversal or Dead Cat Bounce?The U.S. Dollar Index has found footing around the 0.618 Fibonacci retracement near 97.8, breaking a long downtrend. Its push toward the 99.35–100 range suggests a possible retest of a broken structure and alignment with the 50-day EMA. I noticed this move also aligns with short-term recovery signals.
Technical View (1D)
RSI climbing above 50 hints at renewed momentum.
MACD turning green shows early signs of follow-through.
Price is testing 100–101, a former support turned resistance.
If momentum holds, 102, 104, and 106 are the next resistance zones.
Support remains steady at 98, 97, and 95.8, which are shown as strong confluence points with Fibonacci structure.
Scenarios:
If DXY closes above 100.3, I’d expect continuation toward 102.4 or 104.2.
Failure to clear 100 followed by a drop under 98.5 could send it back toward 97.2 or even 95.8.
For now, my bias stays neutral to slightly bullish in the short term. A clean breakout above 100 would confirm a structural shift upward. None the less, I’m watching U.S. yields and upcoming CPI data closely and considering the factor that stronger inflation or a hawkish Fed tone could fuel the next DXY leg higher.
Thank you for your time and support, and as always please remember that this is always NFA and DYOFR, respectfully.
