DXY Retest or Breakout?

US dollar index got very weak in the last week and had a significant drop.

Currently, price is in the correction phase and is retracing the bearish move.

As you see in the chart, price is approaching to the resistance level at 95.826, and we should wait for its reaction to this level:

1. If price retests the resistance and any valid rejection happens after that, I expect a drop on DXY again, towards the last low at 95.200

2. If price breaks the resistance and closes a bullish candle above this level, It may rise towards the last high at 96.250

Since we are in a downtrend, the bearish bias on DXY is more considered.