Short U.S. Dollar Index (DXY)

U.S. Dollar Index (DXY)

Technical Overview:
The U.S. Dollar Index is displaying multiple bearish patterns and indicators across the chart, suggesting the potential for a short-term downtrend:

Support and Resistance Levels:
Key Resistance: The index is currently near a resistance zone, with sellers likely to dominate below this level.


Ichimoku Cloud Analysis:
The price is trading below the Ichimoku cloud at 4-Hours, indicating bearish momentum.


Broadening Pattern:
A broadening pattern has been identified, reflecting increased volatility and expanding price ranges.
The index appears to be trending toward the lower boundary of this pattern.

Head and Shoulders (Incomplete):
The head is clearly formed, with both shoulders developing symmetrically.
A break below the neckline will serve as the trigger for further downside.

Target Levels:
Based on the confluence of these technical patterns and indicators, the DXY could reach the following support levels:

TP1 : 105.388
TP2 : 105.731
TP3 : 104.700

Conclusion:
The combination of support and resistance analysis, Ichimoku cloud signals, and bearish chart patterns (Broadening and Head and Shoulders) strengthens the case for a short position on the U.S. Dollar Index.
Chart PatternsTrend Analysis

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