DXY: The Dollar Is Climbing, but the Retest Could Be the Better U.S. Dollar Currency IndexTVC:DXYDomicChainaThe US Dollar Index continues to follow a very clean bullish structure on the H4 chart. After breaking above the 100.80–101.00 resistance zone, DXY rallied toward 101.53, while the EMA34 is now around 101.00 and the EMA89 near 100.37. This confirms that buyers remain firmly in control, although price has already moved a considerable distance away from its short-term equilibrium. My preferred scenario is a modest pullback toward the 101.20–101.00 area to retest buying interest before the uptrend resumes toward 101.80–102.00. What makes this setup interesting is that the Dollar is no longer advancing through small, hesitant candles. Instead, it has delivered a decisive breakout from the 99.60 area. In strong trends like this, a pullback toward the EMA34 is often a healthy retest of the breakout zone rather than an early sign of reversal. The fundamental backdrop continues to support the Dollar. Reuters reported that the Dollar Index climbed to 101.58 after touching 101.80, its highest level since May 2025, as markets maintained expectations that the Federal Reserve could keep a more hawkish policy stance. Although the Fed left interest rates unchanged, its guidance continued to support the view that rates may remain higher for longer. Today's Forex Factory calendar also features several major US releases, including Final GDP, Unemployment Claims, and Durable Goods Orders. These events could determine whether DXY experiences only a brief pullback or extends its rally immediately.