USDollar In A Corrective Recovery Ahead of NFP Before WeaknessUS Dollar IndexCAPITALCOM:DXYew-forecastGood morning, traders! The U.S. Dollar Index (DXY) is recovering on an intraday basis after recent weakness, and the current structure suggests that further upside could still unfold in the short term. Ideally, the ongoing recovery could develop as wave (c) of an (a)(b)(c) correction within wave "iv". If this scenario plays out, the dollar could retest the 100.0 psychological resistance level before the corrective recovery is completed and the broader downside resumes within wave "v". Therefore, ahead of today's NFP (U.S. jobs) report, traders should be prepared for potential short-term dollar strength, including the possibility of a sharp spike following the release. However, as long as this recovery remains corrective, the broader trend could still favor further downside for the dollar. A renewed decline in DXY, especially alongside easing Treasury yields and stronger bonds, could provide additional support for risk assets. In the current risk-on environment, a weaker dollar after the correction is completed could create room for stocks to extend their gains, while also supporting broader market strength.