DXY - Daily Chart Analysis
Updated
I'm not sure what tf most people prefer for chart analysis. Curious. Comment if you like.
DXY - I'll link an older related idea which will provide a better overall picture of this analysis.
1) Inverted hammer, price is rejected from test of long term channel - weekly chart.
2) Break above channel resistance. Price rejects from smaller Daily channel resistance in line with weekly candle resistance 2016. Price drops back into weekly channel. Consolidation, long upper wick rejection.
3) Break back above weekly channel resistance. Higher high. Price rejects from Daily channel resistance once again. Price holds above weekly channel, final push up produces a lower high.
4) Price falls back below weekly channel resistance.
Previously, I was predicting one final push higher by bulls; target 100 which would close a gap from the weekly chart during the 2017 decline (outlined by blue shaded area).
Price is currently sitting at my previous support line which is the center of previous consolidation structure.
Do bulls have it in them to push back up to 100? I'm not that convinced. Fed repo liquidity injections resemblance to QE may have affected sentiment and skewed the risk of holding dollar longs (It's known to be a crowded trade and could unwind quickly)
Waiting to see the next price bounce. Consecutively lower highs is likely to attract sellers, suggesting the top may be in. A higher high would be capped at 100 and also suggest a top imo. Trend reversal in DXY will likely fuel extended moves in metals priced in USD.
Will post an equal weighted USD index in the comments to eliminate Euro dominance.
Selling rallies makes sense to me at this point.
DXY - I'll link an older related idea which will provide a better overall picture of this analysis.
1) Inverted hammer, price is rejected from test of long term channel - weekly chart.
2) Break above channel resistance. Price rejects from smaller Daily channel resistance in line with weekly candle resistance 2016. Price drops back into weekly channel. Consolidation, long upper wick rejection.
3) Break back above weekly channel resistance. Higher high. Price rejects from Daily channel resistance once again. Price holds above weekly channel, final push up produces a lower high.
4) Price falls back below weekly channel resistance.
Previously, I was predicting one final push higher by bulls; target 100 which would close a gap from the weekly chart during the 2017 decline (outlined by blue shaded area).
Price is currently sitting at my previous support line which is the center of previous consolidation structure.
Do bulls have it in them to push back up to 100? I'm not that convinced. Fed repo liquidity injections resemblance to QE may have affected sentiment and skewed the risk of holding dollar longs (It's known to be a crowded trade and could unwind quickly)
Waiting to see the next price bounce. Consecutively lower highs is likely to attract sellers, suggesting the top may be in. A higher high would be capped at 100 and also suggest a top imo. Trend reversal in DXY will likely fuel extended moves in metals priced in USD.
Will post an equal weighted USD index in the comments to eliminate Euro dominance.
Selling rallies makes sense to me at this point.
Note
Weekly Chart
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