DXY, Local Bullish Reversal Setup Below Major $100 LevelU.S. Dollar Currency IndexTVC:DXYNickSeversGDXY, Local Bullish Reversal Setup Below Major $100 Level DXY has recently broken down from the 100.00 level, which has been a major psychological and technical level for several years. The loss of this level keeps the higher-timeframe structure bearish, and I would not consider the broader trend bullish again unless we see a convincing reclaim of 100.00. That said, the short-term price action is starting to show signs of bullish momentum, particularly on the 1H/4H timeframes. One of the main things I'm watching here is the possibility of a local inverse Head & Shoulders structure forming around the recent lows. This setup is still developing and is by no means confirmed, but the price action is beginning to support the idea of a temporary local bottom. Liquidity Sweep & Local Reversal An important detail behind this potential reversal is the recent sweep of the May low around 98.75. Price traded below this previous low, taking liquidity, before recovering back toward the 98.90–99.00 area. The bullish momentum that followed is what makes the current structure particularly interesting to me. If this was indeed a liquidity sweep followed by a local reversal, I would expect the 98.90/99.00 area to act as an important support zone going forward. Levels I'm Watching As long as DXY can hold the 98.90–99.00 region, I see a relatively high-probability path toward the following upside levels: 1. 99.20 — first local resistance/target 2. 99.30 — second and more significant local target These levels also align with the developing short-term structure and would provide a logical area for price to react from. A move through 99.30 would strengthen the local bullish case, but I would still consider this counter-trend on the higher timeframe while DXY remains below 100.00. What Would Change My HTF Bias? For me, 100.00 is the key level. If DXY manages to reclaim 100.00 and establish acceptance above it, that would be a much more meaningful signal that the higher-timeframe bearish structure is beginning to weaken. Until then, I view the current move primarily as a potential local bottom / relief rally, rather than the beginning of a confirmed higher-timeframe bullish trend. TL;DR HTF: Bearish below 100.00 LTF: Potentially bullish / reversal setup Key support: 98.90–99.00 Liquidity sweep: May low ≈ 98.75 Target 1: 99.20 Target 2: 99.30 Major HTF confirmation: Reclaim of 100.00 My bias: If 98.90–99.00 holds, I see a good chance of DXY pushing toward 99.20 → 99.30. However, I would remain cautious about calling a larger bullish reversal until we see 100.00 reclaimed and held. This is the distinction I'd emphasize: local bullishness does not necessarily mean higher-timeframe bullishness. The current setup can provide upside while the broader DXY structure remains bearish.