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Dollar Index (DXY) Is Gearing Up for a Bullish Breakout

Dollar Index image
image representing Dollar Index

Trade Idea for U.S. Dollar Index (DXY) – Feb 19, 2025 by RoadToAMillionClub on TradingView.com

If you’ve been watching the U.S. Dollar Index (DXY), you know it has been in a healthy retracement after a strong rally from the 100.12 lows to the 110.18 peak. The Fibonacci retracement levels have been our GPS for price action, and today, we’re at a critical junction.

Key Level to Watch: 107.20

  • The 61.8% Fibonacci retracement level (106.34) has acted as a solid support.
  • A daily close above 107.20 will signal that buyers are stepping back in with conviction.
  • This move will invalidate deeper retracement scenarios and open the path to 108.03 (78.6% Fib) and beyond.

Bullish Confirmation Zone

A daily close above 107.20 is the green light for bulls. Why?

  • It confirms that the retracement was just a pit stop, not a reversal.
  • It aligns with momentum shifts that could push DXY toward 108.03 and ultimately 110.18.
  • It traps late sellers who expected a deeper pullback, adding fuel to the rally.

Upside Targets:

108.03 (78.6% Fib) → First resistance level to watch

110.18 → Previous swing high and full trend continuation

Risk Management:

  • Bulls should look for a strong daily close above 107.20 with volume before entering.
  • A rejection at 107.20 could mean more consolidation before the real breakout.
  • If 106.34 (61.8% Fib) breaks down, deeper retracement to 105.15 (50% Fib) is possible.

Final Thoughts

The Fibonacci roadmap is clear—DXY is sitting at the decision point. A strong close above 107.20 should spark renewed bullish momentum, while failure to hold could bring more chop. Stay sharp, stay patient, and let price confirm the next move!

Are you bullish or waiting for more confirmation? Let’s discuss in the comments!

Is DXY bouncing or breaking? Join our Discord and let’s Fibonacci our way to the next move!

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