DXY Failing to Sustain Momentum – Signs of a Deeper Pullback?

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DXY Failing to Sustain Momentum – Signs of a Deeper Pullback?U.S. Dollar Currency IndexTVC:DXYWeTradeWAVESThe U.S. Dollar Index is showing clear signs of exhaustion after a recent push higher, with price struggling to maintain bullish momentum. The structure is becoming increasingly corrective, with weaker highs and hesitation around current levels suggesting that buyers are losing control. Short-term price action reflects indecision, but the underlying flow hints at a potential continuation to the downside. If this weakness persists, we could see a more extended retracement unfold, especially as momentum indicators begin to roll over. This kind of price behavior typically precedes a shift in sentiment, where early buyers get trapped and liquidity is drawn from both sides before a clearer directional move emerges. Staying patient here is key, as chasing entries in this phase often leads to unnecessary losses. Disclosure: We are part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in our analysis.