Despite a notable contraction in U.S. GDP and a sharp drop in Core PCE — both pointing to increasing recession risk — the U.S. Dollar Index (DXY) managed to sustain its rebound.
On the 4-hour chart, DXY is pushing above the neckline of an inverted head-and-shoulders formation. However, confirmation is still needed — a clean hold above 100.30 is essential to avoid a bull trap.
Upside Levels in Sight (if 100.30 holds):101.30 - 102.00 - 103.50
Downside Risk (if neckline fails):99.30 - 98.90 - 98.00
From a monthly perspective, DXY is holding above the 98 support and remains above the lower border of the up-trending channel extending from the 2008 lows, paving the way for another possible drop this year towards that border should the 98-support be decisively breached.
From a daily momentum perspective, the overall picture may signal a short-term trend reset before markets regain directional clarity
Written by Razan Hilal, CMT
On the 4-hour chart, DXY is pushing above the neckline of an inverted head-and-shoulders formation. However, confirmation is still needed — a clean hold above 100.30 is essential to avoid a bull trap.
Upside Levels in Sight (if 100.30 holds):101.30 - 102.00 - 103.50
Downside Risk (if neckline fails):99.30 - 98.90 - 98.00
From a monthly perspective, DXY is holding above the 98 support and remains above the lower border of the up-trending channel extending from the 2008 lows, paving the way for another possible drop this year towards that border should the 98-support be decisively breached.
From a daily momentum perspective, the overall picture may signal a short-term trend reset before markets regain directional clarity
Written by Razan Hilal, CMT
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.