Nataly Kambur
⬤ The US Dollar Index (DXY) is showing renewed weakness after a brief recovery attempt stalled near critical resistance zones. The bounce couldn't stick around the 99.3–99.8 area, where Fibonacci levels at 0.618 and 0.786 created a ceiling that the dollar just couldn't break through. That rejection has traders watching for more downside ahead.
⬤ What we're seeing here looks more like a temporary breather than any real shift in direction. The dollar tried to push higher but ran out of steam right where you'd expect it to—at previous swing highs that line up with those Fibonacci levels. When price can't hold above resistance like that, it's usually a sign the bigger trend is still calling the shots. This pullback fits perfectly with the idea that the recent climb was just a correction inside a larger move down.
⬤ For currency traders, this DXY weakness plays out in predictable ways across the board. When the dollar index drops, pairs like EURUSD and GBPUSD typically climb higher, while USDCHF and USDCAD tend to slide lower. The chart's projected path makes it clear—any bounces in the dollar are more about catching your breath than changing direction.
⬤ The takeaway here is pretty straightforward: don't fight the trend. As long as DXY stays pinned below that resistance zone and respects the bearish structure, any upward moves are likely short-lived. The dollar's ongoing weakness continues to shape how currencies move globally, and that's something traders need to keep front and center.
Nataly Kambur
