DXY β The Range Finally Broke. Now What?US Dollar IndexCAPITALCOM:DXYTheZimpactπ° The Dollar Index spent weeks moving inside a large sideways structure, repeatedly respecting both the upper and lower boundaries. That structure has now been broken to the downside, followed by a sharp expansion lower. Price is currently consolidating after the selloff, which makes the next reaction especially important. π Previously: π Bullish scenario The first thing bulls need is a strong recovery back above the current consolidation and a reclaim of the broken range. If DXY can reclaim the previous zone and then break above the upper resistance area, the bearish structure could start losing momentum and a recovery toward higher liquidity could develop. Reclaim the range β bullish recovery. π Bearish scenario This is where the chart currently looks much more interesting for the bears. The sideways structure has already broken to the downside, and price made a strong bearish expansion immediately afterward. If the current consolidation fails and price breaks below the nearby support, we could see another leg lower toward the next major zone. Range breakdown β bearish expansion. π― Outlook DXY spent weeks building liquidity inside the range, and the market has finally made its decision. Now price is consolidating after the breakdown. Hold below the range β more downside. Reclaim the range β possible recovery. The next move could determine whether this breakdown develops into a much larger bearish trend.