DXY Short-Term View

Dollar index has started a correction phase after a big drop.

As you see in the 1H chart, price is still in the downtrend with lower lows and highs.

Currently, price is in a correction uptrend with making higher highs and lows and bouncing between S1 and R1 levels:

There are two scenarios:
1. If price breaks R1 and closes a bullish candle above this level (93.970), the next target is the last major high around 94.090 (R2), and in the case of an upside breakout on this level, we expect more rise to the next resistance level at 94.220 (R3).

2. If price breaks S1 to the downside and closes a bearish candle below this support level, we can expect more drop towards the last major low at 93.750 (S2).