DXY (US Dollar Index) – 6H Chart AnalysisUS Dollar IndexCAPITALCOM:DXYenwemadufranklyn1989 Title: DXY Testing Descending Trendline Resistance – Bearish Continuation Still Favored The US Dollar Index remains under medium-term bearish pressure after failing to reclaim the previous swing high. Price is respecting a well-defined descending trendline that has capped every meaningful rally since late June, keeping sellers firmly in control of market structure. The recent decline into the 100.10–100.20 region shows bearish momentum remains intact, although the market is approaching a decision point. A short-term relief rally into the 100.75–100.95 resistance zone is possible, where the descending trendline converges with a prior supply area. This confluence creates a high-probability reaction zone that institutional participants may use to re-enter short positions. As long as price remains below both the descending trendline and the highlighted supply zone, the broader outlook continues to favor downside continuation. Key Technical Observations **Market Structure: Bearish (lower highs continue to form). **Trendline: Strong dynamic resistance has rejected multiple bullish attempts. **Supply Zone: 100.75–100.95 remains the key rejection area. **Momentum: Sellers maintain control despite the possibility of a corrective bounce. **Support: 99.08 is the next major downside objective. A break below this level could accelerate bearish momentum. Bullish Scenario A sustained close above the descending trendline and supply zone would invalidate the current bearish structure and shift momentum toward a broader recovery. Bearish Scenario If price rallies into the highlighted resistance and prints bearish rejection (such as a bearish engulfing candle, pin bar, or lower-high formation), it would strengthen the probability of another impulsive leg lower toward 99.08, with further downside possible if support fails. Trading Plan Bias: Bearish Preferred Strategy: Sell rallies into resistance rather than chase breakdowns. Invalidation: A confirmed breakout and close above the trendline and supply zone. Target: 99.08 initially, with potential extension if bearish momentum increases. Conclusion: The technical picture continues to favor sellers. Unless buyers can reclaim the descending trendline and invalidate the lower-high structure, rallies are likely to be corrective rather than the beginning of a sustained reversal. The confluence of dynamic trendline resistance and overhead supply keeps the path of least resistance to the downside.