DXY Breakout Failure Threatens Yearly Uptrend

The US Dollar Index (DXY) has rebounded more than 1% from its August low after a decline of over 3% from the July high. This recovery developed from a confluence of technical support at the 50% retracement of the yearly range and the 25% parallel of the 2026 uptrend at 98.68.

The index has reclaimed its yearly moving average, but buyers still need follow-through to strengthen the broader recovery case. Pivotal resistance remains overhead, with key weekly resistance at 100.16/42.

ADP and Non-Farm Payrolls are major events this week, which could impact the outlook for Fed policy and subsequently affect the US Dollar's performance.