DXY — Is the U.S. Dollar Regaining Momentum?U.S. Dollar Currency IndexTVC:DXYYong726Market Structure The U.S. Dollar Index has staged a strong recovery after establishing a higher low near the recent swing bottom. The previous bearish structure has weakened, and short-term price action is now transitioning into a recovery phase. However, DXY remains below the broader medium-term resistance zone, meaning buyers still need additional confirmation before a sustained trend reversal can be confirmed. Market Sentiment - Neutral to Moderately Bullish Market sentiment has improved following the recent rebound. Buyers have regained short-term control, but momentum is approaching an important resistance area where profit-taking and fresh selling interest could emerge. Bullish Scenario If buyers successfully break above the first resistance, bullish momentum could accelerate and expose the second resistance, confirming that the recovery is developing into a larger trend reversal. Bearish Scenario If price fails to hold above the first support, the recent rebound may prove to be only a corrective bounce, increasing the probability of another decline toward the second support. ──────────────────── Market Outlook DXY has recovered sharply from its recent lows and is now challenging the first meaningful resistance zone. The current price structure favors further upside as long as higher lows continue to develop, but confirmation above resistance remains the key signal that buyers have regained broader control. ──────────────────── Key Levels First Resistance 99.80 Second Resistance 100.20 First Support 99.40 Second Support 98.90 ──────────────────── Future Scenarios A sustained break above 99.80 would indicate renewed buying strength and could open the way toward 100.20, strengthening the current recovery structure. However, if price falls back below 99.40, bullish momentum may weaken and sellers could regain control, exposing 98.90 as the next downside objective. ──────────────────── Event Risk The U.S. Dollar Index remains highly sensitive to expectations surrounding Federal Reserve policy and U.S. economic data. Investors continue to monitor inflation reports, labor-market data, Treasury yields, GDP growth, consumer spending, and comments from Federal Reserve officials. Any meaningful shift in interest-rate expectations could quickly change the direction of the Dollar. The next confirmed major macro event is the Federal Reserve meeting on September 15–16, 2026. Changes in policy expectations may significantly affect Treasury yields, global capital flows, and overall demand for the U.S. Dollar. Ultimately, market reaction matters more than the headline itself. If positive economic data cannot push DXY above 99.80–100.20, bullish expectations may already be priced in. Conversely, if weaker data fails to break 99.40–98.90, selling pressure could be approaching exhaustion, and buyers may gradually regain control. ──────────────────── Do you expect DXY to continue recovering toward the 100.20 resistance zone, or will sellers defend resistance and trigger another leg lower?