Dollar Index (DXY) Bull Flag Holds Support as the Euro and Pound Push Back

The US Dollar Index (DXY) is sitting on support inside a bull flag on Tuesday, November 3, 2026, and I'm watching it for a push back into resistance. The currency board is split around it. In Europe, the euro and the pound are pressing higher against the dollar, while in Japan and Canada the dollar is winning.

The September JOLTS job openings report came out Tuesday morning and beat expectations. On the hourly chart, the dollar pushed up the moment the data hit and has since come back in. Oil dropped sharply on hopes of a US-Iran diplomatic breakthrough. The US also conducted strikes on Iranian targets, and today is midterm Election Day. That is the backdrop; the levels below are where the chart does the talking.

US Dollar Index (DXY) Bull Flag Targets 103 Resistance

Looking at the DXY first. After the sharp move up from early September into late October, the dollar has spent the past couple of weeks consolidating sideways. One pivot inside that range throws the pattern off a little. Even so, a sharp move followed by tight sideways consolidation is a bull flag to me, a bullish formation that could signal the dollar continuing higher, especially with the midterms and the war escalating. I'm curious to see whether that sentiment plays out.

Support is 101.664. Price came down to it today, pierced it and bounced well off it, so that is the floor of the flag and the level I treat as the support test on any dip. Resistance starts at the pivot top at 102.979, which guards the 103 handle and is the next major hurdle. A push through 102.979 brings in a rising trend line from March 12, 2026, which rejected price when the dollar wicked into it in October. The next tag would be its fourth hit, somewhere between 103.40 and 103.50 depending on how soon price gets there. That trend line is the second resistance test I have on the dollar.

Next one is the euro, which is trying to be stronger today. It was green earlier and has gone flat, and the candle now looks like a doji: a small body with small wicks, a standoff between buyers and sellers. Two resistance levels are stacked right where price is sitting. The first is the horizontal low pivot at 1.12105, which price pierced over the past two days before slipping back. Just above it runs a down-sloping trend line from November 21, 2025, full of wicks. That line has flipped to resistance, and since October 6, 2026, price has only wicked into it. Clearing both on the next attempt puts the next low pivot and down-sloping trend line near 1.13 in play. Until then, this is a resistance test, and the euro is pressing it.

EUR/USD Technical Analysis: Euro Tests Key Resistance at 1.12105

The pound has pushed up for five straight days, stronger than the dollar, though it is not printing a higher high today. Near term, 1.34640 is the next resistance level I want price to get past. Above that sits the pivot top at 1.35582. Then come two descending trend lines. The nearer one has only two hits, and my methodology calls for three clean hits on a valid trend line, so this is still an early line and I'm estimating where it shuts price down: about the 1.36 area, on a sharp move up. A tag there gives the line its third hit and makes it more valid. On the downside, the pound broke down from a trend line, reclaimed it, and the last two wicks show that line now acting as support. A pullback to it is the support-bounce zone I have on the pound.

USD/JPY Technical Analysis: Dollar Tests 158.80 Against the Yen

Looking at the yen next. The dollar is beating the yen and pushing back toward the large pivot top at 158.80. The first attempt above it was shut down dramatically the following day. On October 14, 2026, price wicked above it again and could not hold there. Today a strong green bar is pressing into that same level once more. A push through 158.80 puts two resistance levels in play. The first is a trend line from April 23, 2025, which price bounced off cleanly as support before breaking below it. Price would now test it from underneath, and that test lines up with a pivot top near 160.41. Support on a pullback sits at 157.662.

USD/CAD Technical Analysis: Canadian Dollar Faces 1.43 Resistance

Last is the Canadian dollar against the US dollar. The ongoing tariff dispute with the US is part of the backdrop; on the chart, USD/CAD has been much whippier than the other pairs, with sharp moves in both directions. Support first. Price has traded right on 1.39780 for the past four days while trying to push higher, and near term it has to get past the low pivot overhead. On a larger basis, the support trend line USD/CAD broke out of sits below and would be retested on a drop. Under that, a long-term trend line from June 3, 2021, has repeatedly produced bounces, and I'd expect it to protect price around 1.375. On the resistance side, a rising trend line overhead has collected a lot of wicks. A sharp move higher brings the next test near 1.43, lining up with the heavily traded pivot shelf at 1.43239.

Key Forex Support and Resistance Levels to Watch

• DXY 103.40 to 103.50: rising trend line from March 12, 2026, fourth-hit resistance test
• DXY 102.979: pivot top guarding the 103 handle, first resistance
• DXY 101.664: bull-flag support, pierced and bounced on November 3, 2026
• EUR/USD 1.13: next low pivot and down-sloping trend line
• EUR/USD 1.12105: horizontal low pivot resistance
• GBP/USD 1.36: two-hit descending trend line area
• GBP/USD 1.35582: pivot top
• GBP/USD 1.34640: next resistance
• USD/JPY 160.41: pivot top lining up with the April 23, 2025 trend line
• USD/JPY 158.80: large pivot top, resistance test
• USD/JPY 157.662: support
• USD/CAD 1.43239: heavily traded pivot shelf
• USD/CAD 1.39780: near-term support
• USD/CAD 1.375: long-term trend line from June 3, 2021

US Dollar Outlook: Will the DXY Bull Flag Hold?

I'm reading the DXY as a bull flag sitting on 101.664 support, and I'm watching for a test of 102.979 first, then 103.40 to 103.50. The euro and the pound are the pressure on that read, while the dollar's strength against the yen runs straight into the 158.80 pivot top.