19 Jun 2026

The dollar index $DXY bounced off a major long-term weekly trend line and is now pressing into key short-term resistance levels.

The setup has echoes of the 2020/21 consolidation, when an extended period of range trading eventually gave way to a powerful breakout higher. Importantly, the dollar is also trading comfortably above its 50-week moving average, reinforcing the improving medium-term trend. A decisive move through the 100.5 area would strengthen the breakout case. After spending more than a year coiling inside the current range, a break higher risks creating a vacuum move as traders scramble to adjust to a regime shift in the dollar. Source: TME LSEG

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