Alex Bobrov
⬤ The U.S. Dollar Index (DXY) is starting to show signs of stabilization after months of steady decline. Looking at the 4-hour chart, what was once a clear downtrend with lower highs and lower lows has now shifted into a sideways pattern. This consolidation suggests the selling pressure that's been dominating the market might finally be losing steam.
⬤ After dropping from above 105, the index has settled into a range roughly between 96 and 100. What's interesting is that price briefly dipped below this range but quickly snapped back inside. That kind of fake-out move often signals that sellers are running out of gas and buyers are stepping in to defend support levels.
⬤ Since bouncing back into the range, DXY has been trading sideways with the lower boundary holding firm against repeated tests. At the same time, the upper resistance keeps a lid on any rally attempts. It's classic range behavior—neither buyers nor sellers have full control yet, and the market seems to be catching its breath after the extended slide.
⬤ If the dollar does find its footing and starts climbing again, it could create headwinds for risk assets like cryptocurrencies. History shows that a stronger DXY tends to weigh on crypto markets, especially over longer periods. While we haven't seen a confirmed breakout yet, the fact that the downtrend has stalled and a range is forming is worth watching closely.
Alex Bobrov
