Dollar Index (DXY) Falls More Than 0.9% Since the Start of the Week

News surrounding Greenland is the main driver of financial markets today. As a result, we are seeing the implementation of the “Sell America” strategy: the share prices of US companies are falling, and the dollar is losing value against other currencies.

The risks of trade wars, NATO fragmentation, and a potential recession are causing the USD to lose its status as a “safe haven”, with capital flowing into alternative assets (confirming today’s rise in the price of gold to $4,700).

As a result, the dollar index is showing accelerating downward momentum today, having fallen to the 98.500 level.

Technical Analysis of the DXY Chart

On 12 January, analysing the dollar index (DXY) chart, we:

→ updated the descending channel (marked in red);
→ noted that its upper boundary showed signs of strong resistance.

At that time, we considered a scenario of an intermediate upward correction within the prevailing downward trend and suggested that this upward trajectory could eventually be broken by the bears.

Since then:

→ the price continued to fluctuate within the upward trajectory (shown by the blue channel);
→ but it was unable to hold above the upper red line.

Thus, today’s decline fully confirms the earlier assumption (completion of the intermediate recovery and a return of DXY values to the framework of the dominant downward trend), with:

→ the 98.79–99.02 zone (where supply strength had effectively broken support lines) potentially acting as resistance in the future;
→ an ambitious target for the current bearish pressure being the median of the descending channel.