Last week, the DXY broke below important horizontal support.
However, the next day, the index reversed its losses, followed by a bullish candle on Friday.
This created a strong reversal candle on our weekly chart, making us wonder if the initial break was false.
Now, the index is consolidating above this important horizontal support.
A break above the current lateral consolidation could lead to an upward acceleration.
Typically, after a false break, the asset moves in the opposite direction to test the next significant level.
For the DXY, this sets a target in the 1.0650 zone.
Note
DXY bulls should watch 104.50-104.60 for a breakAlso, the pattern is an inverse H&S
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📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
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.