Our technical analysis shows DXY testing its long-term breakout level, with positive economic cycles pushing it higher (Indicator 1)
The used indicator shows economic cycles and their negative correlation with the dollar. When economy is overheated, DXY is going up!
Indicator 2 - we see the positive correlation between DXY and energy sector, and negative correlation with tech. The zero line is showing S&P500 as basis point return. Green line is energy sector and tan line is tech sector. Calculations are made for 52 week returns.
Despite expectations, high oil prices mean high demand for dollars. Our DXY target is $120 in the next few months.
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The used indicator shows economic cycles and their negative correlation with the dollar. When economy is overheated, DXY is going up!
Indicator 2 - we see the positive correlation between DXY and energy sector, and negative correlation with tech. The zero line is showing S&P500 as basis point return. Green line is energy sector and tan line is tech sector. Calculations are made for 52 week returns.
Despite expectations, high oil prices mean high demand for dollars. Our DXY target is $120 in the next few months.
Follow us for more expert analysis and trading insights. #DXY #Bullish #Energy #Tech #Analysis #TradingInsights