Currently, DXY is trading at 99.07, having recovered from the 98.72 support zone. What I am seeing is price has recovered above the short-term moving averages, but the recovery is running into the 99.16 resistance zone where sellers are stepping in. This keeps the recovery constructive, but not strong enough for me to consider it a reversal.

The first resistance zone I am looking at is 99.16. If price clears this, then 99.28 and 99.39 come into play. If price continues to fall, then 98.99 will until 98.88 and 98.72 become significant.

The RSI is above the midline, which is supportive of the recovery. Even with that said, I remain slightly bullish until DXY trades below 98.99. However, I prefer to remain on the sidelines until the hourly candle closed above 99.16, at which point I would be bullish again. I would become neutral again if DXY trades below 98.88.