US Dollar Index (DXY) – Ending Diagonal Signals a Major Bullish

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The DXY is currently testing the upper boundary of a well-defined ending diagonal pattern on the daily timeframe — a structure that often appears at the end of a corrective phase, signaling the beginning of a new impulsive move.

After months of consolidation inside the narrowing wedge, momentum is now turning upward, suggesting a potential bullish breakout is underway. This diagonal likely marks the final wave of a corrective decline (Wave 5 of C) — meaning a larger bullish cycle could be ready to unfold.

Key Technical Notes:

🔹 Price is challenging the upper diagonal resistance near 99.00–99.40.

🔹 A confirmed daily close above this zone would invalidate the bearish wedge and trigger a trend reversal signal.

🔹 Next upside targets: 101.00, 103.50, and potentially 107.00 in extension.

🔹 Pullbacks toward 97.50–98.00 may offer buy-the-dip opportunities within the breakout structure.

Wave Context:
This move could represent the early stages of a new impulse (Wave 1 or Wave A) following the completion of an ending diagonal — a classic reversal signal in Elliott Wave theory.

Momentum Outlook:
Bullish divergence and a tightening structure suggest sellers are exhausted. A confirmed breakout would likely ignite short covering and renewed USD strength across the board.

Bias: ✅ Bullish / Long-biased — watching for breakout confirmation above 99.40.

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