DXY Bearish Rejection at Resistance – Eyes on 96.250 Target”

Technical analysis of the U.S. Dollar Index (DXY) on the 2-hour timeframe. The setup suggests a rejection from a resistance zone, with a projected decline towards a key support level. Here's the breakdown:


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DXY Bearish Setup – Resistance Rejection Targeting 96.250


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Key Technical Insights

1. Bearish Trend Channel

Price is moving within a clearly defined descending channel.

The recent move touched the upper boundary of the channel and was rejected — indicating continued bearish momentum.


2. Resistance Zone

Marked in light gray near 98.335 - 98.964, this zone includes:

EMA 50 (98.323) and EMA 200 (98.964) – dynamic resistances.

Previous horizontal structure resistance.


The price failed to break above this zone, confirmed by the red arrow, indicating selling pressure.


3. RSI Indicator

RSI is around 43.38, showing weak bullish momentum and staying below the 50 midline — consistent with bearish expectations.


4. Projected Move

If the rejection continues, the projected price target is around 96.250 — a 2.08% downside move, as marked.

This target aligns with the lower trendline and a prior consolidation zone.



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Scenarios

Bearish Continuation (Primary Bias):

Expect price to form a lower high and continue down toward 96.250.

The area around EMA 50 is acting as a cap on price rallies.


Bullish Invalidator:

A clean breakout and close above 99.00 (above trendline + EMAs) could invalidate the bearish view.




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Conclusion

> The U.S. Dollar Index remains in a clear downtrend. With repeated failures near the resistance zone and bearish RSI posture, the outlook favors a move lower to 96.250 unless key resistance is broken.




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