Can the US dollar finally carve out a significant bottom next week? The signs are there, but buyers have work to do.
US Dollar Index (DXY) Forecast
The DXY is attempting a significant breakout this week. I have discussed the February trend line in recent videos, combined with the massive confluence of support at 97.70.
So far, the USD index has bounced at 97.70, but buyers are struggling to break above the 99.00 mark. That isn’t surprising, given the significance of the 2025 trend line.
As mentioned in recent videos, step one for the DXY to confirm a bottom occurred with Tuesday’s 98.30 breakout. Step two is to break 99.00, which has yet to happen.
There is an intraday imbalance just below 98.30 that could come into play soon. I would like to see the DXY clean up the 98.29 single print before looking for USD longs next week. While there’s no guarantee, it would be ideal from a liquidity standpoint.
Key support for DXY is 98.30, with resistance at 99.00 and 100.20.
