Bouncing off the previous high support area - which is now resistance, we might see the INDEX:DXY on a decline situation. Depending on price action, I made up a few price projection:
A (orange) - Starting the next trading week with fake bullish moves and look for shorts. New York sessions from Monday/Tuesday will tell a lot more. Price back too support, look for consolidation/accumulation and downside breakout. Long term more down moves.
B (red) - Starting the next trading week with the same as the same scenario as A; Shorts from London/New York sessions all week. Long term big consolidation range within S&R area and further down moves.
C (blue) - Starting the next trading week with fake bearish moves trapping all retails into short positions and pushing the INDEX:DXY further up to reach and bounce off the bearish trend line, also on the highlighted S&R line. Pulling out the fibs on the weekly, this projection could give us an optimal trade entry based on the retracement.
88.4 is my long term bias for the INDEX:DXY . Price action can only determine which situation could occur and even, none of them. This will help on the direction of all USD cross pairs.