- A breakdown from the multi-year expanding triangle on DXY triggers a technical target that points towards 91.00.
- Since July 2023 the market has tried rebounding but it struggled at resistance points that correspond to Fibonacci ratios (61.8%–78.6%) indicating that bullish pressure is diminishing.
- The breakdown of support levels confirms that dollar strength during the post-pandemic era has lost validity as economic conditions become more uncertain.
The U.S. Dollar Index (DXY) has decisively broken down from a two-year-long expanding triangle pattern, raising fresh concerns over continued downside pressure. A significant downward move on the weekly scale validated the bearish continuation pattern which aimed at reaching early 2021 price zones. Latest market data suggests that the breakdown has rendered the recovery pattern established since mid-2023 worthless as it now sets up a more severe market deterioration.
DXY Breakdown Confirms Bearish Continuation Pattern
The expanding triangle, which developed between September 2022 and early 2025, has now clearly resolved to the downside. The DXY completed its peak in September 2022 before it established successive higher peaks as well as lower valleys during the subsequent months. The price rebound from July 2023 did not succeed in breaking above the previous uptrend because it encountered resistance near the 61.8% through 78.6% Fibonacci retracement level.
The failure at an essential resistance level indicated diminishing bullish strength. The technical target near the 91.00 level became active once the triangle fell below its lower support line. The price movement demonstrates a textbook bearish continuation pattern which supports the changing macroeconomic market sentiment.
Dollar Strength Falters as Support Levels Break, Eyes on 91.00
A lack of support during the second half of 2023 invalidated the multi-year upward trend which started in early 2021 through a break below established price levels. The demise of the post-pandemic dollar strength period came to pass while economic uncertainty about U.S. financial policy and global interest rate modifications intensified.
The decline shows rising force according to market analysts. The price drops illustrate a strong negative trend because trendline and triangle support levels were lost in a brief period of time. Future price movements should determine if support will stabilize at the 91.00 area after a projected price drop.
DXY Falls Below 100, Signaling Bearish Momentum
The DXY indicator currently stands below $1.00 after a sudden downward movement which demonstrates bearish market activity. History demonstrates that this fast-term movement conforms to past DXY price breakdown patterns. The foreseeable direction shows decreasing pressure as long as powerful upward momentum fails to appear.
