DXY Detailed Analysis US Dollar IndexCAPITALCOM:DXYNadia_farhat- The US Dollar Index (DXY) is trading near 98.50, just below the 50% Fibonacci retracement level (98.68) after breaking out from a minor descending channel, signaling a potential shift toward bullish momentum. - Prices are now expected to test immediate resistance at 98.85, with further upside targets at 99.05 (38.2% Fib) and 99.25 if momentum sustains. - Bollinger Bands are beginning to expand, and the RSI has recovered to 53, suggesting improving buying pressure but still room before entering overbought territory. - On the downside, 98.31 (61.8% Fib) and 97.95 (lower Bollinger Band) remain key supports to watch. - Traders awaiting the crucial US CPI and Core CPI data later today, volatility could spike sharply; a stronger-than-expected print may push DXY toward the 99.00–99.25 zone, while a softer reading risks a pullback toward 98.30 or lower.