DXY ready to moon from here in anticipation of Fed taper?
The DXY broke out of the range it was trading in since 20th Jul 2021. Whilst bullish, this break upwards may be a fake out and we should not be surprised if price falls back in within the range and subsequently retest the bottom of the range. We think the week will start bearish before finding support near the 93.1 levels at which it is crucial to wait and see the market's next move.
BEAR CASE
If price fails to break the ATH at 93.74, we think that the bull run may be cancelled and price to retest the bottom of the channel at around 92.0
BULL CASE
If the 93.1 level holds, we should see prolonged upside for the DXY as we go into the last quarter of the year.
BEAR CASE
If price fails to break the ATH at 93.74, we think that the bull run may be cancelled and price to retest the bottom of the channel at around 92.0
BULL CASE
If the 93.1 level holds, we should see prolonged upside for the DXY as we go into the last quarter of the year.