Nosedive In Dollar Index

DXY (Dollar Index)-- The recent spate of weak economic data points coupled with Powell's apparent acquiescence to the "need" to start to lower interest rates at the September meeting (9/18/24) has triggered a vertical nosedive in DXY from above 103 to today's low at 100.63, which we see on my attached Daily Chart represents a full-fledged test of the December 2023 low. 

My Daily setup work exhibits bearish form from the 4/16/24 recovery rally high at 106.52 into today's low at 100.63 with the more recent downleg from the 6/28/24 recovery rally peak at 106.13 looking to me like it has unfinished to the downside that implies a violation of the Dec. 2023 low at 100.62 that projects to much more consequential support in and around the July 2023 low-zone at 99.58.

One look at my bigger picture enclosed Weekly DXY Chart from 2005 puts EVERYTHING INTO A LARGER AND CONSIDERABLY DOLLAR-DEFENSIVE POSITION. Downside continuation to and below the July 2023 low of 99.58 leaves DXY vulnerable to a B-line to 95-96 to challenge the major support line from 2011. 

My sense is that the Weekly DXY Chart setup is warning us that forthcoming macroeconomic surprises (US economy) will be weaker-than-expected, and as such, the Fed likely will find itself either cutting more often than expected or by larger increments than expected (i.e., 50 bps at a clip to attempt to preserve a soft landing but more likely to avert recession).

Commodities should benefit from weakness in the Dollar as will multinational corporations selling overseas. Otherwise, most asset classes will be dependent on the infusion of Fed liquidity (or the perception that the Fed has not fallen behind the proverbial eightball) to attract capital... Last in DXY is 100.87