Technical Analysis of U.S. Dollar Index Prices: Ten Days Stand Between Markets and the Storm — Will the Dollar Index (DXY) Extend Its Rally or Is a Reversal Imminent?

The four-hour chart of the U.S. Dollar Index shows a clear upward movement within an ascending channel in the short term, as the price successfully rebounded from the 98.50–98.90 zone, supported by a rising moving average, before approaching the psychological barrier of 100.00 once again. From a technical perspective, this behavior reflects the continuation of positive momentum, particularly with the gradual formation of higher highs and higher lows, reinforcing the bullish trend hypothesis as long as the price remains stable above dynamic support levels.

At the same time, the price is currently facing a pivotal resistance area near 100.00, which coincides with the Fibonacci 0.236 level and a secondary descending trendline, making it a decisive zone for determining the next direction. Therefore, a confirmed breakout with a clear close above this region could push the index toward retesting the recent peak near 100.50 and potentially extending the rally, while failure to break through may lead to a corrective pullback toward the 99.50 and then 99.00 levels, especially with clear overbought signals appearing on the Stochastic momentum indicator below.

The most likely scenario under current conditions is continued consolidation within the 99.00–100.00 range with a bullish bias, until a strong catalyst emerges to drive a decisive breakout. From a forward-looking standpoint, any break below 98.90 would weaken the bullish structure and open the door for a deeper correction toward the 98.50 area, whereas holding above 99.50 would strengthen the chances of retesting recent highs. In summary, the market is currently in a “decision accumulation” phase between continuing the upward move or initiating a temporary correction.

Supports: 99.00 – 98.90 – 98.50

Resistances: 100.00 – 100.50 – 101.00