US Dollar Faces Breakout Risks Above 101.20 U.S. Dollar Currency IndexTVC:DXYFOREXcomWhy the 101.20 Zone Matters As the old saying goes, the trend is your friend. The DXY has respected a rising trend structure since 2008 and is now testing: A multi-year support-turned-resistance zone near 101 that has been in place since 2022. The 38.2% Fibonacci retracement of the decline between the 2025 high and the 2026 low. The potential neckline of a double-bottom formation developing throughout the past year. A breakout above 101.20 would expose the next major Fibonacci resistance levels near: 102.80 (50%) 104.50 (61.8%) This scenario could accelerate downside pressure on currencies and precious metals On the downside, DXY would need to break below 100 and then 99.30 to re-establish a short term bearish outlook, potentially supporting a recovery in major currencies and precious metals. - Razan Hilal