DXY – Long-Term Distribution → Bearish Continuation Bias

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DXY – Long-Term Distribution → Bearish Continuation BiasU.S. Dollar Currency IndexTVC:DXYgrussssThe U.S. Dollar Index is trading within a multi-decade distribution range after a parabolic expansion. Price has repeatedly failed to hold above the upper boundary of this range, signaling long-term supply dominance rather than trend continuation. The recent advance into the highlighted zone represents a reactionary retracement into prior resistance, not a structural trend shift. Thissupply zone aligns with: •Historical rejection levels •Failed continuation attempts •Compression under long-term descending pressure This is consistent with distribution behavior: range expansion, sharp reactions, then resolution lower. Market Mechanics •Upside momentum is corrective, not impulsive •No clean acceptance above the range high •Rallies are being used to rebalance short exposure, not initiate new longs •Downside liquidity remains largely untouched below the range Execution Idea •Sell Zone: Current / upper retracement into the marked supply area •Invalidation: Monthly acceptance and close above the supply zone •Targets: •First objective: Range equilibrium •Final objective: Prior multi-year lows (liquidity draw below the range) Expectation Once distribution completes, DXY is likely to enter a prolonged markdown phase, favoring USD weakness across FX, commodities, and risk assets.