Overview of the Global US Dollar Index (DXY) Trend

From the larger cycle (weekly chart), the picture is very clear. After a sharp decline from the high point and a full trend reversal (CHoCH), the index entered a long and dull consolidation phase.

Currently, the price is around 98.925, moving within a local upward channel. Recently, we saw the price sweep the lower boundary to clear equal lows (EQL), showing a reasonable reaction and a partial rebound. But visually, the entire structure looks more like a classic retracement pattern (bear flag) within a downtrend.

Key areas to watch:

- Supply zone (100.000 – 101.500): There is a huge red supply zone above. As long as the index remains below this area, the overall bearish trend still dominates. Locally, the price may continue testing the upper boundary of the channel at this resistance zone, but breaking through will be very difficult.
- Demand zone (94.500 – 96.500): The main target area for the current downtrend. This is a deep blue demand zone, with a weak low point around 95.000 below, also pointing to this area.

Summary:
Locally, the US dollar may continue to fluctuate within the current channel for a while, attempting to reach the 100-101 zone. However, the medium-term and overall main direction remains bearish. It is expected that the upward channel will eventually be broken downward, with the price directly dropping toward the blue demand zone (below 96.000).

The decline of the US dollar index is traditionally a great macro driver for massive gains in the crypto market. Keep an eye on the directional choice!