Time to be neutral about the prospects of DXY. Although the trend was significantly bearish considering the recent blowing up of investors confidence followed by USA midterm elections. Let us now analyze what seems to be adequate possibilities that may follow considering the lack of egalitarian policies as the end of year approaches:
1- We are currently at a major important support level (103.8-104.2) as elaborated in my previous big picture idea about (see related idea)
2- The downtrend rally is finely observing a downtrend channel, breaking out from here we can expect a retracement to the level between 107-108.5, however, the major trend remains bearish unless broken higher than last yearly high at ~114.7. If it crosses higher than described retracement zone, we will see about it later
3- If the yearly support does not hold, we might be heading towards a double figure value for DXY i.e. <100
4- We got a midterm extended target zone near the price value of ~101.7, we can expect a retest of yearly support zone at 103.82-104.2 if we bounce from here
5- For now we are waiting for one of the two possibilities to comment further about the DXY targets i.e. either yearly support ruptures or downtrend channel breaks high
6- We are currently having a daily bullish doji star and a weekly bullish harami candle, which indicate a possible retrace to the continued bearish trend
7- Confiding in bear, we must also consider that we are presently at the point where the year is ending and FEDs are preparing a closing report, therefore, just ride the wave as far as it goes. We might spot a proper reversal later when it appears.
Best of luck and happy trading :-)
1- We are currently at a major important support level (103.8-104.2) as elaborated in my previous big picture idea about (see related idea)
2- The downtrend rally is finely observing a downtrend channel, breaking out from here we can expect a retracement to the level between 107-108.5, however, the major trend remains bearish unless broken higher than last yearly high at ~114.7. If it crosses higher than described retracement zone, we will see about it later
3- If the yearly support does not hold, we might be heading towards a double figure value for DXY i.e. <100
4- We got a midterm extended target zone near the price value of ~101.7, we can expect a retest of yearly support zone at 103.82-104.2 if we bounce from here
5- For now we are waiting for one of the two possibilities to comment further about the DXY targets i.e. either yearly support ruptures or downtrend channel breaks high
6- We are currently having a daily bullish doji star and a weekly bullish harami candle, which indicate a possible retrace to the continued bearish trend
7- Confiding in bear, we must also consider that we are presently at the point where the year is ending and FEDs are preparing a closing report, therefore, just ride the wave as far as it goes. We might spot a proper reversal later when it appears.
Best of luck and happy trading :-)
