DXY Rebounds from Support — Can Buyers Extend the Recovery?U.S. Dollar Currency IndexTVC:DXYYong726Market Structure The U.S. Dollar Index (DXY) remains in a broader bearish structure on the 4-hour chart, but recent price action shows a short-term recovery from the latest swing low. Buyers have regained some momentum, although the index is now approaching an important resistance zone where selling pressure may reappear. Market Sentiment - Cautiously Bullish Market sentiment has shifted to cautiously bullish. The recent rebound suggests buyers are attempting to regain control, but confirmation above key resistance is still required before the outlook can turn decisively bullish. Bullish Scenario If DXY breaks above 99.40, bullish momentum could accelerate and open the door toward the next resistance around 99.80. A sustained move above that level would indicate a stronger short-term trend reversal. Bearish Scenario If price fails to hold above 99.00 and falls back below this support, sellers could regain control and push the index toward the next support near 98.70. A break below that level would reinforce the broader bearish structure. ──────────────────── Market Outlook DXY is attempting to recover after a prolonged decline. While the rebound has improved short-term sentiment, the index must clear nearby resistance before confirming a more meaningful recovery. ──────────────────── Key Levels First Resistance: 99.40 Second Resistance: 99.80 First Support: 99.00 Second Support: 98.70 ──────────────────── Future Scenarios A break above the First Resistance would suggest buyers are gaining momentum and could extend the recovery toward the Second Resistance. However, if price falls below the First Support, sellers may regain control and push the index toward the Second Support. ──────────────────── Event Risk DXY may remain sensitive to upcoming U.S. inflation data, Federal Reserve comments, Treasury yield movements, and overall market risk sentiment. However, price action remains the key indicator. If positive news cannot push the index above the First Resistance, upside momentum may remain limited. Conversely, if DXY breaks below the First Support despite supportive headlines, it would suggest sellers remain firmly in control. ──────────────────── Please share your view below: Do you expect DXY to continue recovering, or will the broader downtrend resume? More market structure and key level updates will be shared regularly.