Be careful of the reversal wedge
We had several down days, so high probabilities of continuation
Holidays so, low volume
Below 145 a lot of room to gap fill at around 142 (make take days or weeks to fill it)
Below 145 we will confirm further bearish momo
Follow scenarios as follow.
Also, we are in a choppy zone here, so keep that in mind..
I am out of the markets for now until DXY decides what to do.
Will follow closely since, as you see closely on the chart, bulls are underwater.
This week we have major news reports. We have to analyze how will USD will react to inflation data and how this will affect interest rates and the overall economy.
On the technical side, we have seen NO buyers on the 90s range.
We are in a long term bear-flag -2.96% , even though I wanted DXY -0.42% to touch the down-trend and reject it, to complete the flag...
We recently rejected the 1345 zone and continue to remain between the downward channel.
This is short scenario that is not yet active.
It will be active if :
1. We break and hold below 1333
2. Entry would be at a pullback and retest (refer to chart).
