⬤ The DXY Dollar Index futures just broke through an 18-year rising trendline that's been holding since the mid-2000s. The weekly chart shows the dollar slipping below the support line that's guided it higher through multiple market cycles. This isn't just another dip—it's the first real breakdown of this long-term structure in nearly two decades.
⬤ That trendline was rock solid for years. The dollar bounced off it again and again, respecting the same support zone through financial crises and policy shifts. Now it's sitting below that level around the mid-90s, and what used to be support has flipped to resistance. The chart's telling us something changed.
⬤ The timing lines up with bigger moves happening in global markets. Countries like Japan, China, and the UK—all carrying heavy debt loads—might start defending their currencies more aggressively. If they do, that could mean more Treasury selling, which puts additional pressure on dollar demand. The technical breakdown on the chart is playing out alongside these fundamental shifts.
⬤ This matters because when a multi-decade trendline breaks, it changes how traders and investors view the dollar. We're now in new territory where the dollar's behavior will directly impact currency pairs, commodity prices, and broader market conditions. With that long-term support gone, every policy decision and capital flow shift carries more weight.
