DXY | Liquidity Sweep Before Bullish Continuation?U.S. Dollar Currency IndexTVC:DXYFundexTraderWeekly Timeframe The US Dollar Index (DXY) continued its bullish movement last week, sweeping liquidity above the previous week's high near 102.535 before reversing lower. Price subsequently moved below the previous week's low and tested the previous month's high around 101.612, highlighting a potential liquidity-driven retracement following the recent bullish expansion. Despite the rejection from higher levels, the broader recovery remains constructive. The April 2025 high near 103.576 remains an important upside liquidity objective should bullish momentum resume. Daily Timeframe On Wednesday, DXY established a new weekly high following the CPI release, sweeping liquidity above the previous week's high. Although the daily candle closed bullish, price failed to sustain the breakout and closed back within the previous week's range. The subsequent bearish movement supports the possibility of a deeper retracement before another bullish expansion. 4H Timeframe On Thursday, DXY opened with a gap lower and continued declining, eventually sweeping liquidity below the previous week's low before moving back inside the range. This price action presents two potential scenarios for the upcoming week: Scenario 1 – Shallow Liquidity Sweep DXY may experience a temporary recovery before retracing toward the 101.20–101.40 region, where additional sell-side liquidity could be targeted. A meaningful liquidity sweep followed by bullish closed-candle confirmation could provide an early indication of renewed buying interest. Scenario 2 – Deeper Liquidity Sweep Alternatively, DXY may extend its retracement toward the 101.00 region or lower, targeting additional liquidity and potentially revisiting the underlying bullish Fair Value Gaps. A sweep into these areas, followed by a confirmed bullish reaction, could support another move higher. Outlook for the Upcoming Week My preference is to observe whether DXY can first collect additional sell-side liquidity before attempting to resume its bullish movement. However, neither scenario is a prediction. A sustained move below the identified support areas without bullish confirmation would require reassessing the bullish outlook. The focus remains on liquidity, market structure, and closed-candle confirmation rather than anticipating price direction. Let price action reveal the next opportunity.