Saad Ullah
The U.S. Dollar Index is sitting at a make-or-break moment. Traders are keeping a close eye on whether the dollar can bounce from current levels, which could spell trouble for the euro and push EURUSD into a deeper decline.
Key Technical Levels to Watch
As noted by SIRRILLAH, the chart reveals some important areas where price action could turn. Sell-side liquidity got swept near the 96.00 level, which sparked a sharp bounce back up. Now we're seeing price climb back into the Balanced Price Range around 97.00 - this is where things get interesting. The CISD level at 97.646 is acting as immediate resistance, and if we break through there, it opens the door for a move toward 99.00. Looking further out, there's buy-side liquidity sitting at 100.50, which becomes the longer-term target if this bullish momentum keeps building.
Market Implications
This setup matters beyond just the dollar itself. If DXY can hold these levels and push higher, it's bad news for EURUSD and likely means more downside for the euro. The macro environment still seems to favor dollar strength - whether it's Fed rate expectations or general risk sentiment in the markets. When the dollar moves, it tends to ripple through everything else, affecting not just other currencies but stocks and commodities too.
Bottom Line
The dollar is at a crucial decision point around 97.00. A successful defense of this level followed by a break above 97.65 would confirm the bullish case and probably send EURUSD lower. It's one of those setups where the next move could set the tone for weeks ahead.
Saad Ullah
