Recap From Yesterday
In yesterday’s DXY technical analysis, we highlighted:
- 96.00–97.00 as major support
- Money flowing into the Dollar during Middle East crisis
- 100.00–102.00 as resistance
- Break above 99 as early bullish confirmation
Today’s price action confirms the bounce is gaining traction.
What’s Changed Since Yesterday?
Strong Impulsive Move Higher
- Clean break above 98.30 (R1)
- Push through 98.99 (R2)
- Now approaching 99.90 (R3)
The momentum is accelerating as the conflict in the Middle East continues to escalate. From here, the next most obvious level that comes into focus is the 100 psychological level.
Technical Structure Update
Key Levels From Your Chart
Resistance
R3 – 99.90
Immediate test zone.
R4 – 100.81
Psychological + structural barrier.
R5 – 101.72
Near the major 101.90–102 macro ceiling.
Above 102 → confirmed breakout.
Support
98.30 (R1 flip)
First pullback support.
97.40 Pivot
96.70–97.00 Major Demand Zone
Intermarket Signals
Traders and investors should be keeping an eye on the following:
- Oil rally + Dollar rally = true geopolitical risk pricing
- Gold vs Dollar relationship (real yield sensitivity)
- ES / NQ reaction to DXY strength
If equities weaken while DXY strengthens, that confirms risk-off positioning.
Scenarios Going Forward
1. Bullish Breakout (40%)
Clean break above 100 → move toward 101.70–102.
2. Pullback & Consolidation (35%)
Retest of 98.30 before next leg higher.
3. Range Rejection (25%)
Failure near 100 → rotate back toward 97.50.
This is all still hinges on the developments in the Middle east. The markets are very volatile at the moment and any changes in rhetoric or major escalations can send the Dollar surging or collapsing.
This analysis is for educational and informational purposes only and does not constitute trading advice or a recommendation to buy or sell any futures contracts or currency instruments. Trading involves significant risk and may not be suitable for all investors. Always conduct your own research and consult with a licensed financial professional before making trading decisions.
