DXY Breaks Daily Trendline: Weakening Momentum or Just a Pullback? - XS
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DXY Breaks Daily Trendline: Weakening Momentum or Just a Pullback?

Date Icon 10 April 2026
Review Icon Written by: Linh Tran
Time Icon 3 minutes
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Article Summary

DXY has broken its medium-term ascending trendline on the daily chart after repeated rejections at the 100–100.5 resistance zone, signaling weakening bullish momentum. However, with the higher-low structure still holding, the current decline is more likely a pullback. The 98.2–98.4 support zone will be key in determining whether the broader uptrend can be sustained.

On the daily timeframe, the US Dollar Index has broken below the medium-term ascending trendline formed from the lows around the 95 level, as selling pressure repeatedly emerged at the key resistance zone of 100–100.5, indicating a clear loss of bullish momentum.

The break of the ascending trendline on the daily timeframe reflects weakening short-term momentum in DXY. However, as the higher-low structure remains intact, this move is more likely a technical pullback rather than a signal of a broader trend reversal.

In addition, RSI on lower timeframes has started to cool off, further supporting the case for a technical pullback. However, it is important to note that the medium-term trend has not been fully invalidated, as price is still holding above the higher-low structure on the daily chart. Therefore, the current decline is more likely to be a pullback toward lower demand zones rather than an immediate trend reversal.

At present, DXY is trading around 98.6, just above the support zone of 98.2–98.4. If the index manages to hold this support and rebound, the broader bullish structure could remain intact, with upside targets toward a retest of 100–100.5 and potentially extending to 101.5.

On the downside, a decisive break below the 98 level could accelerate selling pressure, pushing the index toward 97.5 or lower, thereby confirming a deeper corrective phase on the daily timeframe.

10.04.2026

DXY

(Chart powered by TradingView. Charts are for educational and illustrative purposes only and may differ from live trading prices on our platform.)

Disclaimer: The chart reflects the analyst's opinion and does not constitute investment advice. Past performance is no guarantee of future returns. Seek independent advice before making decisions.

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Linh Tran

Linh Tran

Market Analyst

Linh Tran is a member of the Market Analysis team at XS.com, holding a Master’s degree and with experience in the financial markets since 2018. She focuses on macroeconomic analysis, central bank policies, and multi-asset markets including forex, commodities, equities, and cryptocurrencies, delivering structured and data-driven market insights.

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