DXY – Technical & Fundamental Outlook

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DXY – Technical & Fundamental OutlookU.S. Dollar Currency IndexTVC:DXYFernandoValdiviezo1Technical: The DXY continues to trade with a clear bearish bias after being rejected from the 100.00–100.30 supply zone. Price is making lower highs and lower lows, holding below prior resistance, which now acts as a strong cap. As long as the index remains below 99.00–99.50, downside pressure dominates, with room toward the 98.00 area. Any rebound looks corrective unless there is a clean recovery above 100.00. Fundamental: The dollar remains pressured by expectations of a more dovish Federal Reserve stance, with markets pricing in slower economic momentum and potential rate cuts ahead. Softer US macro data and easing inflation expectations continue to weigh on USD demand, while risk assets gain relative strength. Near-term DXY direction will be driven by incoming US data and Fed communication, but the broader bias stays bearish unless fundamentals shift materially.