Is the dollar index (DXY) preparing for a strong bearish reversal from the resistance zone?

Is the dollar index (DXY) preparing for a strong bearish reversal from the resistance zone?

Is the dollar index (DXY) preparing for a strong bearish reversal from the resistance zone?

27 Jul 2026

by: Kadiri Radouane

Date: 27.Juillet.2026 Current price:101.465

Analysis on the DXY dollar index - 4-hour frame depends on the possibility of a bearish reversal from a strong resistance area šŸ“‰ šŸ”¹ 1. Resistance Zone The price has risen strongly and has now reached the blue zone approximately between 101.40 and 101.70. This area is important because it represents a supply/resistance area, and the price has already interacted with it before. šŸ”¹ 2. Possibility of liquidity withdrawal The drawn scenario predicts that the price will first: Simple rise within the zone → break through recent peaks or withdrawal of liquidity → bearish rejection. This means that the rise above the last top does not necessarily mean the continuation of the uptrend, but rather it may be a false breakthrough to attract buyers and then reverse the price. šŸ”¹ 3. Expected scenario After the emergence of signs of rejection from the blue zone, the analysis predicts the beginning of a strong downward wave towards lower levels, and the target set is close to 100.40. šŸ”¹ 4. Why is the landing possible? Because the price: * Quickly ascend towards a resistance zone. * Tests a previous display area. * Approaching previous peaks that could contain liquidity. *Liquidity Sweep may then form a reflection. āš ļø Conclusion The basic idea is: DXY rises towards the resistance zone → withdrawal of liquidity above the peaks → the appearance of a bearish rejection → the beginning of a downward movement. But it is not preferable to sell just because the price has reached the area. It is best to wait for a clear bearish confirmation such as a local bottom break or a bearish CHoCH/BOS appearance. If the dollar index falls, it may support the rise of some currency pairs and gold, but each asset must be analyzed independently

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