US Dollar Index (DXY) – Institutional Structural OutlookUS Dollar IndexCAPITALCOM:DXYphilipemavMacro Context The Dollar Index is currently holding within a weekly demand zone after a prolonged distributive phase. The market is evaluating whether this region will act as a structural accumulation base or if deeper liquidity levels will be tested. Confirmation from COT reports will be crucial to validate institutional positioning. Technical Structure Breakout & Acceptance: The last major breakout is still respected, with price now consolidating above demand. Demand Layers: Three clear demand zones are mapped: Current Demand – where the market is attempting to accumulate. Deep Discount Demand – a deeper structural level where liquidity could be absorbed if the first zone fails. Extreme Deep Discount Demand – ultimate defensive layer, aligned with long-term rebalancing. Accumulation: Price is building a smaller accumulation range, signaling potential preparation for an institutional move. Projected Scenarios Primary Bias (Accumulation/Long): If confirmed by COT, current accumulation may trigger a structural recovery of the Dollar, strengthening against weaker counterparts (AUD, NZD). Invalidation: A clean break below the current demand would open the path towards deeper demand zones, reframing the context as continuation of distribution. Confirmation & Monitoring COT Reports: Weekly positioning will confirm whether institutional players are indeed accumulating or still unwinding Dollar exposure. Volatility Index (VIX + EVZ): As timing filters for breakout confirmation. Macro Drivers: Next Fed communications and global liquidity flows remain critical catalysts. ⚖️ Institutional Note: The DXY is at a decision point – smaller accumulation is visible, but validation from institutional flows (COT) is essential before considering a structural recovery.