DXY Dollar Index: More Consolidating of recent gains likely DXY Dollar Index: Consolidating recent gains
The dollar is consolidating recent gains after reaching a high at 94.06, some 14 points shy of the medium target here. My
bad and not a fault in the chart, as there is old resistance at the 94.03 level from the end of last year, as the chart clearly
shows. Sorry for that.
Anyway DXY (and USD pairs) look like they have some more
unwinding to do in the near term and DXY should come back down the small parallels it's beginning to form to the 93.12
line which must then hold if the dollar is to remain firm for the rest of the month from here. Any subsequent failure to
hold the 93.12 line will trigger another near term bout of dollar weakness back to 92.55-92.25 and at the same time
trigger EURUSD longs (and across most of the other pairs too.)
On the upside, for the Dollar to escape this period of consolidation and avoid a retest of 93.12 it has to break back
above the upper falling parellel from the high and then hold at the 93.36 first line of support on the first retest from
above. But that looks unlikely in the very near term, as above.
