The Dollar-Index (DXY) is trading below its mid-term 102.50/45 support zone at time of writing. That move could lead to a major correction in the coming trading sessions unless a counter-movement sets in soon. In a first step DXY could drop to 101.00, after that comes the important 100.00/99.50 treshold. In this regard, the Dollar could lose 1.0 to 2.5% from here.
The main driver of DXY is the EURUSD currency pair. With the break of the 1.0636 resistance today a bigger recovery could be on the table. First targets are the 50 ema (1.0742) and the 1.0800 level (approx. +1%). The nearly one year old downtrend that started on May 26, 2021 (red descending trend line) comes in around 1.0990 today. If things get worse for the Dollar a correction of 2.5% would lift EURUSD easily to the 1.0950/1.1000 level. Here I would short the pair at the latest.
Good luck,
Sebbo