DXY — Potential Exhaustion at Resistance?US Dollar IndexCAPITALCOM:DXYRobbertOosterhuisOn October 9, I shared this DXY setup, highlighting a potential move lower after an extended rally for the dollar. Technical outlook DXY has been trading higher but price is struggling to maintain its upward momentum near the upper boundary. We could be seeing potential buying exhaustion near resistance. My scenario is a possible move lower, especially if DXY makes a lower low and confirms a bearish shift in structure. This is not confirmed yet, so I’ll be watching how price reacts around these levels. What does this mean for gold and silver? Fed expectations: Fed Governor Christopher Waller noted that higher long-term bond yields are already helping tighten financial conditions. This could support the case for keeping rates unchanged at the next FOMC meeting. Dollar weakness: A weaker dollar generally supports dollar-denominated precious metals by making them cheaper for holders of other currencies. My outlook I’m watching for confirmation that DXY is losing momentum and potentially breaking down from its current structure. A confirmed move lower in the dollar would strengthen the bullish case for gold and silver, although both metals will still depend on their own price action and broader market conditions. The idea is developing, but confirmation is still key.