📊 DXY – U.S. Dollar Index Technical Outlook
🔹 Market Structure
Short-term: DXY is recovering from the recent low 97.70 → 98.20.
Bigger picture: The structure is still bearish:
Lower highs remain intact.
Major downtrend is not broken.
The rising trendline support is holding for now, but if it breaks, price could retest the previous lows.
🔹 Key Supply – Demand Zones
Supply Zone (98.45 – 98.55):
Previous resistance where sellers were aggressive. If price reaches this zone, fresh selling pressure is likely.
Demand Zone (97.90 – 98.00):
Strong buyers previously defended this area. A break below it would confirm continuation of the broader bearish trend.
🔹 Implications for Forex & Gold
When DXY rises → USD strengthens → Gold (XAUUSD) usually weakens.
When DXY falls → USD weakens → Gold tends to rally.
✅ Possible Scenarios:
Rejection at Supply Zone (98.45 – 98.55):
USD weakens → Gold may rally upward.
Breakout above 98.55 and sustain:
USD strength extends → Gold could drop further.
⚖️ In short: Watch the 98.45–98.55 zone on DXY for direction. Gold’s next big move will likely align with how price reacts here.
Sana Shaikh
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