DXY: Compression Near Key ResistanceU.S. Dollar Currency IndexTVC:DXYSophie_MarenThe U.S. Dollar Index remains trapped between rising trend support and long-term descending resistance, leaving the market in a phase of structural compression. Although buyers continue to defend higher lows, repeated rejections beneath trend resistance suggest that sellers still retain control of the broader market structure. The recent decline returned price to a key support area, where buyers responded with another recovery attempt. This reaction confirms that demand remains active, but the rebound has yet to produce a decisive break above resistance. As long as the market continues to trade within these converging trendlines, momentum is likely to remain balanced despite improving short-term buying interest. The primary scenario favours another test of the descending trendline while rising support continues to hold. Such a move would allow buyers to challenge the dominant resistance once again, but a sustained breakout accompanied by higher highs and higher lows is required before a broader bullish trend can be considered. The alternative scenario becomes increasingly relevant if the ascending support trendline fails. A decisive break below support would invalidate the current recovery structure, strengthen bearish momentum, and increase the probability of a deeper corrective decline. For now, the market remains at an important technical decision point. Buyers continue to defend support, while sellers maintain control beneath trend resistance. The next reaction around these trendlines is likely to determine whether the current recovery develops into a structural breakout or the broader bearish pressure reasserts itself.