Taking lead from our previous analysis, DXY did not behave as expected. The Dollar Index failed to break above the **101.7 resistance** and instead showed a sharp decline.

This weakens the earlier bullish breakout view and gives temporary relief to risk-on assets.

## Market Structure

DXY is now testing the Daily EMA-200, which is a major support/resistance level whenever price approaches it.

The reaction from this zone will be very important.

## Key Level

**Major Support:** Daily EMA-200
**Resistance:** 101.7

A daily close below EMA-200 would open further downside for DXY and may strengthen risk-on assets.

## Market Impact

Weak DXY may support:

• Crypto
• Equities
• Emerging markets
• Weak currencies against USD
• Gold/XAUUSD, due to USD weakness

## Stance

➡️ DXY Failed At 101.7
➡️ Bullish Breakout Attempt Weakened
➡️ Sharp Decline Seen
➡️ EMA-200 Now Critical Support
➡️ Daily Close Below EMA-200 May Open More Downside
➡️ Weak USD May Support Risk-On Assets

Price tells the story.

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