DXY Macro Outlook: Multi-Decade Resistance & Structural CorrectiU.S. Dollar Currency IndexICEUS_DLY:DXYPulieM_82The Macro Narrative (12M - 3M Perspective) From a multi-decade perspective, the U.S. Dollar Index remains within a significant structural cycle. After rejecting the major highs near 114.68, the index has entered a protracted bearish correction phase. On the 12M (Yearly) timeframe, the previous yearly close set a firm ceiling. We are presently retesting the 100.00 psychological level, which serves as a critical "pivot point" for long-term direction. 📈 Technical Confluence (Weekly - Daily) The Weekly structure is currently testing a high-probability confluence zone. This area is defined by: The 200-period Daily SMA: Acting as immediate dynamic resistance. While price has momentarily pierced this level, I am looking for a Daily close back below it to confirm the rejection. Descending Channel Resistance: Price is respecting the upper boundary of a long-term bearish channel. Overbought Stochastic: On the Daily timeframe, the Stochastic is above 80, indicating momentum exhaustion at this heavy resistance. 🎯 The Trade Setup The primary objective is to capitalize on a Mean Reversion move away from this resistance cluster. Entry Zone: 98.960 – 99.400 (Resistance Confluence) Primary Target: 97.000 (Intermediate Structural Support) Secondary Target: 94.556 (Major Channel Mid-point) Invalidation: A Daily close above 100.03 would negate this bearish outlook. 🌍 Macro Catalyst & Risk Note: The ultimate catalyst for this bearish move may lie in the geopolitical landscape. A resolution to current regional tensions would likely trigger a sharp decline in energy prices, removing the inflationary pressure that currently supports the Fed's hawkish stance. In such a 'risk-on' event, we would expect a rapid acceleration toward our primary target of 97.000. Conclusion: I am following the "Trends within Trends." While there is short-term volatility, the path of least resistance is toward the 97.000 handle.