Financial markets today are being driven largely by developments around Greenland. Consequently, the “Sell America” trend is unfolding: US equities are under pressure, and the dollar is weakening against other major currencies.
Concerns over potential trade wars, NATO instability, and a looming recession are undermining the USD’s role as a “safe haven”, with investors shifting funds into alternative assets — a trend reflected in gold reaching $4,700 today.
The dollar index is now showing accelerating downward momentum, having slipped to the 98.500 level.
DXY Chart: Technical Overview
On 12 January, when reviewing the DXY chart, we:
→ refreshed the descending channel (highlighted in red);
→ noted that the upper boundary of the channel acted as a significant resistance point.
At that stage, we considered a scenario involving a short-term upward correction within the broader downtrend, anticipating that the bears might eventually regain control.
Since then:
→ the price has oscillated along the upward trajectory (marked by the blue channel);
→ however, it has been unable to break above the red upper boundary.
Today’s decline confirms this earlier projection: the intermediate rebound has ended, and DXY is moving back into the dominant downward trend. Key points to note:
→ the 98.79–99.02 range, which previously acted as a strong supply zone, may continue to serve as resistance;
→ the median line of the descending channel could become the next key target for the current bearish momentum.
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