Dollar Index Roadmap: Breakout, Hawkish Fed, and What Comes NextU.S. Dollar Currency IndexTVC:DXYpejman_zwinThe US Dollar Index(DXY) measures the value of the US dollar against a basket of six major currencies. Fundamentally, its direction is driven primarily by interest rate differentials, inflation trends, economic growth, and monetary policy expectations. At the June 17, 2026, FOMC meeting (Kevin Warsh’s first as Fed Chair): The Fed held the federal funds rate steady at 3.75%. However, the dot plot turned hawkish: the median projection for the end-2026 rate rose to 3.8% (from lower levels previously). Nine of 18 participants now expect at least one rate hike in 2026. Warsh stressed the Fed’s commitment to “delivering price stability”, highlighted that inflation remains above the 2% target for several years, and removed language that previously leaned toward future cuts. Key Fundamental Implications: Higher US rate expectations widen the interest rate differential versus other major economies (ECB, BoJ, etc.). This attracts foreign capital into US assets (Treasuries, equities), increasing demand for USD and pushing DXY higher. Persistent inflation (recently around 4.2% in some readings, with upward revisions in PCE forecasts due to energy/geopolitical pressures) supports a “higher for longer” policy stance under Warsh. The shift away from dovish forward guidance reduces the probability of aggressive rate cuts, which is bullish for the dollar. Geopolitical uncertainties (Middle East tensions) further enhance USD’s safe-haven status. ----------- Technical analysis: Now let’s take a look at the DXY chart on the daily timeframe. The DXY appears to have successfully broken the resistance zone($100.80_$99.93), and we can expect further upward movement in the coming days. From an Elliott Wave perspective, it seems that the five-wave decline on the daily timeframe has ended, and we can anticipate a new impulsive upward wave. On the daily timeframe, we can also clearly see a Wyckoff Accumulation pattern. It seems the price has completed phase D, and we should now be looking for the start of phase E. I expect the DXY, given the above fundamental and technical reasons, to rise at least toward the next resistance zone($103_$102), with potential for further increase. Educational: The Wyckoff Accumulation Pattern is a market structure that often forms after a strong downtrend and can signal the beginning of a new bullish trend. During this process, large institutional traders gradually accumulate positions while price moves within a trading range. Key events include the Selling Climax (SC), Automatic Rally (AR), Spring (a false breakdown below support), and Sign of Strength (SOS). Once the price successfully breaks above resistance and confirms strength, the accumulation phase is considered complete, increasing the probability of a sustained upward move. What’s your view on the DXY index? Can it continue its bullish run, or not? 💡 Please respect each other's opinions and express agreement or disagreement politely. 📌 DXY Index Analyze (DXYUSD), Daily time frame. 🛑 Always set a Stop Loss(SL) for every position you open. ✅ This is just my idea; I’d love to see your thoughts too! 🔥 If you find it helpful, please BOOST this post and share it with your friends.