Last week the DXY made a nice bounce up which was needed for the Dollar. Right now there are 3 important price levels, there are 2 Support zones and 1 Resistance zone.

If price goes up from here it needs to break and Support/Resistance flip the current Resistance zone before it can continue its uptrend. If price rejects the Resistance zone or goes down from here, there are 2 Support zones that could hold up the price and make it go up.

The first zone would indicate that there are a lot of buyers ready to step into the markets and buy up all the selling pressure.

if this zone does not hold, there will also be a short possibility. When price breaks the first Support zone and goes to the second Support zone, things will get a little more tricky because this Support zone is very important for the weekly time frame(Read our https://www.trade-dash.com/resources/market-updates/monthly-market-update---october for more context). If this Support zone holds up the price, the Dollar will be okay for now. If this support zone breaks and is also S/R flipped to a short, the possibility of a very weak Dollar goes up by a lot and this would also have world wide economic impact.

But for this week, let's see how the price reacts to the first Support zone below or to the Resistance zone above.