U.S. Dollar Index (DXY) – 1H Technical AnalysisU.S. Dollar Currency IndexTVC:DXYIbrahimTarekThe U.S. Dollar Index continues to trade within a well-defined descending broadening channel, where price has repeatedly respected both the upper resistance and lower support boundaries. Despite the prevailing bearish structure, buyers have recently regained momentum after printing a strong reaction from the lower boundary of the channel. The latest rally has established a sequence of higher lows, supported by the ascending trendline (purple), indicating that bullish momentum is gradually building. However, price is now facing a critical resistance zone formed by the intersection of the descending channel resistance and a short-term bearish flag (red). As long as DXY remains above the 100.97–101.00 support area, buyers maintain a short-term advantage. A successful breakout above the bearish flag followed by a confirmed close above the channel resistance would invalidate the recent corrective structure and could trigger an impulsive move toward the 101.40, 101.60, and potentially 101.80 resistance levels. On the other hand, failure to break above the descending resistance and a loss of the ascending trendline would suggest that the current rally is merely a corrective pullback within the broader bearish channel. In that case, the index may revisit 100.80, followed by 100.50, with the lower channel boundary remaining the primary downside target. Key Levels Resistance: 101.20 → 101.40 → 101.60 → 101.80 Support: 100.97 → 100.80 → 100.50 → 100.35 Bullish Scenario A confirmed breakout above both the bearish flag and the descending channel would signal a shift in market sentiment, opening the door for a sustained recovery toward higher resistance levels. Bearish Scenario Rejection from the current resistance confluence, followed by a break below 100.97, would reinforce the existing bearish channel and increase the probability of another move toward the lower boundary. Impact on Precious Metals A bullish breakout in DXY would likely create headwinds for Gold (XAU/USD) and Silver (XAG/USD), as both assets usually maintain an inverse correlation with the U.S. Dollar. Conversely, any rejection from current resistance and renewed dollar weakness could support a fresh rally in precious metals.