Could DXY be signaling some coming weakness in the US Dollar?

After tumbing to 100.481 USD on 2nd of February 2023, the DXY painted a falling channel to the lows of 99.10 USD on 18th of July 2023, where it found support and buyers of the dollar confirmed their strength by having the DXY close at 101.329 USD on 27th of July 2023. US Dollar strength has been on an uptrend since then, which saw the resistance band of the falling channel being broken on 16th of August 2023 and getting retested at 102.56 USD on 30th of August before Dollar buyers reconfirmed their strength.

Recently, price action of the DXY shows that it stepped well into the 104.884 ~ 105.488 USD resistance zone and closed with shooting stars over 2 consecutive days while painting a rising channel within a rising channel, a warning that we can expect the index to pullback from its recent bull run.

Over this coming week if the index slips and closes below 104.920 USD over 2 consecutive daily candles, we may expect to see some weakness in the US Dollar across the board. The weakness however may be temporary unless the Dollar Bulls are still sleeping beyond 104.10 USD.

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