The U.S. Dollar Index remains under pressure following the sharp decline from the recent highs, with the broader structure continuing to favour the downside.

However, the latest price action suggests DXY may attempt a corrective recovery first. A short-term push higher could develop as the market retraces part of the recent decline before sellers potentially regain control.

Our primary scenario is therefore a temporary recovery followed by another bearish leg, with the next decline potentially extending toward fresh lows. The behaviour of the upcoming corrective move will be important in confirming whether this bearish sequence remains intact.

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