DXY Is Still Bullish... But One Level Changes EverythingU.S. Dollar Currency IndexTVC:DXYMihai_IacobThe US Dollar Index has been in a well-defined bullish trend since the beginning of the year, with the latest impulsive leg, which started in early May, pushing the market above the major 100.50 resistance and printing a fresh yearly high around 101.80. After such a strong advance, a correction was both expected and healthy. That correction unfolded as a classic bullish flag, allowing the market to digest gains without damaging the underlying trend. More importantly, the former 100.50 resistance was successfully retested as support before buyers stepped back in, eventually triggering a breakout above the flag's upper boundary and confirming the continuation of the bullish trend. Everything looked constructive. Until today. After stalling around the 101.50 area on Friday, the Dollar Index opened the new week with a noticeable gap lower and is now struggling to recover, suggesting that short-term buying momentum has faded. At this stage, I still consider the broader structure to be bullish. As long as 100.50 holds, buyers remain in control, and the recent weakness should be viewed as nothing more than a correction within an established uptrend. That said, there is one thing I would rather not see. I don't want the market to slip back below the 100.70–100.80 area and start testing 100.50 once again. Repeated tests of the same support tend to weaken it. Every bounce consumes part of the available buying interest, increasing the probability that sellers will eventually break through. If DXY starts trading back toward 100.50, it would be the first sign that the bullish structure is losing strength and that selling pressure is gradually taking control. Trading View For now, my outlook remains constructive while the Dollar Index trades above 100.50. However, I will be monitoring price action very closely over the coming sessions. A strong recovery from current levels would reinforce the bullish continuation scenario. On the other hand, continued weakness and another test of 100.50 would significantly reduce my confidence in the uptrend and force me to reassess the bullish outlook. As always, it's not about predicting what the market will do—it's about recognizing when the evidence starts to change.