US Dollar Index
Short

DXY - Dollar Index Facing a Strong Rejection

135
In my view, DXY looks like a sell on the last trading day of the week.

Yes, ongoing global conflicts usually push investors toward safe-haven assets like the U.S. dollar. But this time, the picture may be a little different. Since the U.S. is also directly tied to one side of these tensions, investors may act more cautiously toward the dollar into the weekend. On top of that, the recent negative headlines around the U.S., including the plane crash, could add more hesitation and limit bullish momentum on the dollar in the short term.

From a technical point of view, the 99.0–100.0 zone is a very important area, and for now it is acting as a strong resistance zone. Price is testing the 99.5 area for the third time, and in my opinion this repeated test could lead to a much stronger rejection this time.

Overall, I believe DXY may turn bearish into the end of the week, and selling from this resistance zone looks like the better idea.

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