DXY – Break or Bounce? Key Levels to WatchU.S. Dollar Currency IndexTVC:DXYAndre_CardosoDXY The DXY has broken below the 106.96 support, establishing a new fractal at 106.14 while testing the major April 2024 fractal resistance forged at 106.51. This price action leaves the dollar in a critical decision zone, with two main scenarios in play: 1️⃣ Bullish Scenario: If the dollar holds above the newly formed support and reclaims the daily fractal resistance at 107.38, it could trigger a recovery attempt, potentially leading to a retest of previous highs and the weekly fractal resistance. 2️⃣ Bearish Scenario: A failure to hold current levels could push the DXY below the emerging triangle structure, targeting the weekly fractal support at 105.42. A break below this level increases the probability of reaching the 200% Fibonacci extension at 104.59, where a bullish Crab pattern is projected in convergence —a critical area for potential trend reversals. 🔍 Key Technical Factors: 📌 Consolidation Triangle: DXY is stuck below the double top neckline but above the most recent fractal support forged at 106.14. 📌 Fibonacci Levels: The dollar is currently trading at the 38.2% Fibonacci retracement (106.35), with projected harmonic patterns aligning near the next 50% retracement level. 📌 Liquidity & Stop Hunts: Multiple bullish harmonic patterns emerging just below the weekly fractal support indicate possible stop-hunting activity against short positions. 💡 Key Levels to Watch: 📈 Resistance Levels: Weekly – 110.17 Daily – 107.38 4H – 106.65 Monthly – 106.51 📉 Support Levels: 4H – 106.17 Daily – 106.14 Weekly – 105.42 Monthly – 100.15 ⚠️ Final Thoughts: DXY is at a crucial inflection point. A breakout above 107.38 could fuel a bullish move, while a breakdown below 105.42 may accelerate a bearish extension towards 104.59-104.78. Until the price confirms direction, it is advisable to remain neutral and wait for a clear signal before committing to a directional bias. Happy Trading, André Cardoso 💡Risk Warning: Trading financial assets carries a high level of risk and may result in the loss of all your capital. Make sure to fully understand the risks involved before you start trading and carefully consider your investment objectives, level of experience, and risk tolerance. The data and information provided in this content do not constitute financial or investment advice and should not be considered as such. Only invest what you can afford to lose, and be aware of the risks associated with trading financial assets.