Yuriy Ukazkin
⬤ The U.S. Dollar Index found its footing after a steep drop, stabilizing near the 96.30 level before climbing back toward the middle of its recent range. The index initially formed an inside range candle, putting the responsibility on buyers to prove they could trigger a reversal. That proof came when DXY closed above the previous session's range, showing that downside momentum had run out of steam and buyers were starting to return.
⬤ What followed backed up this change in market mood. Buyers came in with conviction, confirming what looked like a triple bottom pattern on the daily chart. This suggested sellers had exhausted themselves at that level. On top of that, a bearish pennant that had been taking shape failed to break lower, eliminating a major downside threat and helping steady sentiment around the dollar.
⬤ Recent sessions have shown follow-through that looks more like consolidation than distribution. A bullish continuation candle was followed by another inside range candle, meaning price is digesting gains within the prior day's boundaries. Technically, this points to controlled consolidation, with buyers still in control as the index trades between clear support near 96.30 and resistance around 100.14.
⬤ This matters for broader markets because moves in the Dollar Index often ripple through currency pairs, commodities, and overall risk appetite. A sustained hold above support keeps the rebound alive and opens the door for more upside toward resistance, while failure to build on this would bring downside risks back into play. For now, DXY is stuck in consolidation mode, with the next big move likely hinging on whether buyers can push past nearby resistance.
Yuriy Ukazkin
