The DXY index is currently displaying strong bearish momentum, trading below a significant descending trend line, indicating further potential for price drops.
If the trend continues, the index could decline towards its first support level at 101.93, which is a multi-swing low support level and conjoins the 78.60% Fibonacci retracement level. A breach of this support could cause prices to fall further to the second support level at 100.82, a swing low support.
However, if the index rises, it could encounter resistance at the first resistance level of 103.46, an overlap resistance level that also corresponds to the 38.20% Fibonacci retracement level. Breaking this resistance level could lead to the next level of resistance at 104.60, which is also an overlap resistance level.
