InvestMate|DXY Correction before continuing declines💲

💲DXY Correction before continuing declines

💲In today's post we will look at the situation on the dollar index.

💲As in last post I perfectly predicted the declines by presenting my observations on current monetary policy in the US, I refer to the material below:

💲This time I think there is a chance to make an upward correction in the downtrend.

💲I have used several technical analysis tools on the chart, I will describe each one separately below:

💲1. I have determined the downward channel of the downtrend
This has been respected many times in the past, as we can see we are currently below it, and there is a high probability of a return to the middle.

💲2 I measured the fibo waves from the peak to the current low. The levels could provide resistance in the future

💲3 I measured the biggest correction in the downward momentum and came up with the level of the 1:1 equality of the biggest correction falling at the level of 110.168

💲4 I have set a support zone at current levels, we can see that this price level has been a zone of interest in the past.

💲5 I determined a resistance zone, based on the 0.382 level cluster of the downward wave and the 1:1 range of the largest upward correction. The location on the chart is not coincidental, price has found solid support at these points in the past

💲The scenario I'm playing out is for a correction to the resistance zone from where the next downward wave will start, all due to a weakening dollar based on the ever-closer valuation of the peak of the interest rate hike and falling inflation. For more fundamental data, I refer you to my previous post on the dollar

💲*Please do not suggest the path I have drawn with the lines this is only a hypothetical scenario for further increases.

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Kommentera:

Bottom defended, an upward session is in the pipeline