DOLLAR INDEX- WEEKLY TIMEFRAME ANALYSIS U.S. Dollar Currency IndexTVC:DXYenwemadufranklyn1989We're looking at the U.S. Dollar Index (DXY) on the weekly timeframe, and what’s happening here can be broken down step-by-step: --- 🔍 1. Overall Structure The chart shows a major downtrend that started after the last high around 110.176. Since then, price has made a series of lower highs and lower lows, confirming bearish momentum. --- 🧭 2. Current Price Action (Recent Weeks) Current price: 98.816 Recent low: 96.218 You can see a base forming between 96.2 – 99.0, which looks like a potential accumulation zone. Price has bounced off that 96.2 support, showing buyers are defending that level. --- 📊 3. What It Means The long red candles earlier show strong bearish control (USD weakening). But now, the smaller green candles and wicks indicate loss of bearish momentum — sellers are no longer as aggressive. This often hints that institutions might be building long positions for a potential correction or reversal. --- 🧩 4. Key Technical Levels Support Zone: 96.00 – 97.00 → where buyers stepped in. Resistance Zone: 100.00 – 101.50 → the next test area for price. If price breaks above 99.50–100.00 and holds, that confirms bullish continuation toward 101 – 103. But if it rejects again near 99.50 and drops below 97.00, expect further bearish continuation toward 95.00 or even 93.50. --- 💡 5. Institutional Insight Given the prolonged drop: Smart money could be accumulating USD longs around the 96 – 98 range. They typically buy when retail traders still expect further decline — so this could be an early reversal phase. --- 🧭 6. Summary DirectionStatusKey LevelsSignal Long-Term TrendBearish110 → 96Still dominant Medium-TermAccumulation96 – 99Possible reversal forming Short-TermBullish Attempt99 – 101Needs breakout to confirm 🟦 Institutional Buy Zone (96.0 – 98.0) This blue region represents institutional accumulation. Large players (smart money) began building long positions here after a long decline. The repeated rejection wicks around 96.2–97.5 indicate strong buying interest and liquidity absorption. This zone acts as a major support area — any retest into it could trigger renewed bullish reactions. --- 🟥 Institutional Sell Zone (100.0 – 101.5) The red zone marks institutional distribution or short positioning. Historically, price rallies into this area have been met with strong rejection, suggesting liquidity grabs before downside continuation. This zone now serves as a major resistance level, where sellers may re-enter. --- ⚖️ Interpretation The current price (98.8) sits between these two zones — meaning DXY is at a decision point. A break above 100.0–101.5 would confirm bullish strength, targeting 103–105. But a rejection near 99–100 and fall below 97.0 would signal bearish continuation back toward 95.0–94.0. --- 🔍 Trading Insight As long as DXY holds above 96.0–97.0, expect possible accumulation or reversal structure. Institutions tend to use this stage to trap retail sellers, then push the market higher toward the sell zone.