Bank of America Global Research discusses the USD Index (DXY) technical outlook.

"In 2026, DXY made higher highs and lows, formed a head-and-shoulders base, confirmed a post-Fed double bottom and has tracked a bullish 2018 trend. It has not broken the secular uptrend since 2008 to signal a bear cycle," BofA notes.

"We seek a Sept-Nov rally to 102.50 (new YTD highs). This would strengthen the case for a larger bull cycle and an aggressive wave pattern that points DXY above 115. Failure to make new highs, or invalidation of the YTD bottom patterns, would instead favor a bearish wave pattern toward the 87s," BofA adds.