DXY Yearly AnalysisU.S. Dollar Currency IndexTVC:DXYJordanMT - Where is price? Price is in Area2, below the static yearly EBOT and above the yearly live EBOT. Direction is down, slope is down. Price is in a c-wave down, congestion target has been acheived. Flow (bearish) is strong, as the candle is long and the close is relatively close to the low of the candle. - What is it doing? 2022 candle broke the congestion confines of the 2021 candle (high of this candle is higher than the latest trend high), closing above the PLdot and extending the upward move and 2023 and 2024 candles were trend up candles as they closed on the same side of the PLdot. 2022 after exhausting, demonstrated that the Area5 is strong resistance and 2025 candle clearly demonstrated the force of this resistance. 2025 candle now is a congestion entrance candle, posing the boundaries for the following candles and implying that we shall have most probably congestion action trading in the consecutive yearly DXY candles. - What is next? The 2025 congestion entrance implies that the DXY is likely entering a phase of Congestion Action on the yearly chart. 1. Congestion Confines: - Resistance (Dotted Line): 2022 High (approx. 114.78). - Support (Block Level): 2025 Low (96.218). 2. Primary Scenario (Congestion Action): - The market is expected to oscillate between these two levels (114.78 and 96.218) over the coming years, with yearly closes alternating above and below the live yearly PLdot (currently at 103.34). - The main objective of a Congestion Action Trade is to move from the bottom of the envelope to the top and vice versa, utilizing the support/resistance levels created by the envelope (EBOT, PLdot, ETOP) and the block/dotted line levels. 3. Alternative Scenario (Congestion Exit): - Congestion Action ends when one of the confines is broken, leading to a Congestion Exit, which is the prelude to a new trend. - Bullish Exit: A yearly close above the Dotted Line (114.78) would signal a resumption of the uptrend. - Bearish Exit: A yearly close below the Block Level (96.218) would signal the start of a new downtrend. 4. Importance of the Block Level: - The Block Level at 96.218 is the initial support for this congestion. The Block Level is potentially the most difficult trade and its strength depends on the Higher Time Period (HTP) (5 year TF - unfortunately TradingView does not go yet above 12M intervals). - As long as this level holds, Congestion Action remains the most probable scenario. Happy New Year to the global trading community! 🎉📈 May your risk be measured, your conviction be tested (but not punished), and your wins be larger than your losses. May you respect your stops, trust your process, and remember that the market doesn’t owe us anything. And here’s the catch: May you be just as proud of the trades you didn’t take as the ones you did. Here’s to a year of discipline over ego, patience over prediction, and survival first — profits second. Cheers to the next session and happy 2026. 🥂📊