DXY at the Crossroads: Will It Defy the Bearish Trap?

DXY CMP: 106.293

Rejection of the 2023 high price at 106.952 has given strong resistance for DXY and it has found support currently at 105.50

In the above chart, the possible price movements are mentioned as a series of support and resistance where 1 denotes the first rejection projected at the level of 106.55, meaning the price has already done that rejection. From here, the price is expected to test the support again (point 3) and from there it will fall till the second projected point viz. range of support between 104.35 to 104.05, a possible retest of point 3 as resistance again for validation of bearish movement in the making. On the valid rejection of Point.3, prices are expected to fall till Point 5 as the major support which falls at $101.80

This mark will be a deciding factor in whether DXY will recover or will continue to fall below USD100.