DXY: Will the rising dynamic trendline hold?
Updated
Tough times for the USD; the market didn't buy Powell's hawkish attempt, ECB went as expected and Dixie has plummeted today.
I do think the USD crosses will get a breather retracement tomorrow, so we could see a bounce off the rising trendline on HTF's. If we break the wedge to the upside then this could lead to a higher low and could signal a reversal with a higher high.
If the trendline is broken, and we then go on to make a new low then I think the USD will continue to struggle, what with the ECB and BOE continuing to hike, and showing some good data.
Watching and waiting...
I do think the USD crosses will get a breather retracement tomorrow, so we could see a bounce off the rising trendline on HTF's. If we break the wedge to the upside then this could lead to a higher low and could signal a reversal with a higher high.
If the trendline is broken, and we then go on to make a new low then I think the USD will continue to struggle, what with the ECB and BOE continuing to hike, and showing some good data.
Watching and waiting...
Note
The long-term dynamic trendline held. If DXY breaks 103.5 we should see 105, and if it breaks that it validates an inverse head and shoulders pattern and should rocket, sending USD crosses down. The US economy is in better shape than most, it's inflation is only double target, the FED have suggested more rate hikes and the economy may still avoid recession, unlike others.
USD is still the global currency, it may not be in the future but that is years away. Why would China et al seek to devalue the currency that they hold so much of? I believe we'll see a big push before the next USD crash, longer-term.
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