Ivan Zhigalov
⬤ The U.S. Dollar Index is still under pressure after a brief pause at descending support couldn't trigger any real reversal. DXY printed a spinning top candle at a key support zone, showing temporary hesitation as buyers tried defending the level. But that effort didn't stick—the next session brought another bearish continuation candle, keeping the downtrend alive on the daily chart.
⬤ This price action happened inside a broader bearish structure that's been building since DXY dropped below its 200-day moving average. The chart shows an evening star pattern forming below that long-term level, followed by continued downside momentum. Multiple bearish candlestick signals dot the chart, while price keeps trading beneath descending resistance—meaning rallies just haven't had any legs.
The spinning top briefly suggested indecision, but the immediate bearish continuation shows that selling pressure remains dominant.
⬤ From a market psychology angle, this sequence shows sellers staying in control. Dip-buying attempts near support got quickly absorbed with no real follow-through from buyers. The spinning top hinted at indecision for a moment, but the immediate bearish follow-up proved selling pressure is still running the show. The chart marks repeated failures to reclaim former support zones and acceptance of progressively lower prices.
⬤ DXY weakness matters for broader markets because the dollar index plays a central role in global currency relationships and cross-asset pricing. Persistent lower levels signal ongoing downside pressure, while the lack of bullish confirmation highlights the importance of reclaimed levels before any trend change becomes realistic. As long as price stays below key resistance and the 200-day moving average, bearish conditions continue defining the dollar index's near-term structure.
Ivan Zhigalov
