After multiple tests of the 100 resistance zone, the US Dollar Index ( 
DXY ) finally started to drop, with the move accelerating into the gap formed two days ago.
At this point, even if a new local low is still possible, I don’t see this as a reversal of the trend.
In my view, this is more likely just a temporary pullback, and the index should rotate back to the upside and eventually make another attempt above the 100 resistance zone.
Trading perspective
If this scenario plays out:
EUR/USD → downside pressure
GBP/USD → downside pressure
So the focus:
Looking to sell EURUSD and GBPUSD
Conclusion
Short-term weakness, but the bigger picture still points higher for DXY.
Let’s see if buyers step back in.
🚀
DXY ) finally started to drop, with the move accelerating into the gap formed two days ago.At this point, even if a new local low is still possible, I don’t see this as a reversal of the trend.
In my view, this is more likely just a temporary pullback, and the index should rotate back to the upside and eventually make another attempt above the 100 resistance zone.
Trading perspective
If this scenario plays out:
EUR/USD → downside pressure
GBP/USD → downside pressure
So the focus:
Looking to sell EURUSD and GBPUSD
Conclusion
Short-term weakness, but the bigger picture still points higher for DXY.
Let’s see if buyers step back in.
🚀
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🎯 Want More Trading Ideas?
📈 Join the FREE Forex & Gold Channel
👉 t.me/intradaytradingsignals
💎 Join the FREE Crypto Channel
👉 t.me/FanCryptocurrency
📈 Join the FREE Forex & Gold Channel
👉 t.me/intradaytradingsignals
💎 Join the FREE Crypto Channel
👉 t.me/FanCryptocurrency
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.