After passing 96, our next target is 97.5 – 98. Our previous resistance appears to have turned into support, and our bias is bullish for the dollar.
The ascending triangle we’ve been in for weeks has been broken to the upside. It’s closest resistance is 96.5. I expect a retracement to 38.2%+ and then another stride up. Makes for some good setups on USD pairs this week.
DXY is still in its consolidation zone, but it is showing rejection of our 94.4 – 94.5 zone. There’s a head and shoulders with some pretty big wicks. At this point, we will just have to wait to see which way it goes once it gets closer to the end of its ascending triangle.
We’ve been hitting this zone for awhile now. Statistically it’s a good sell, but I’m watching for a breakout upward.
I’m watching for a bullish breakout of DXY. I expect to see some nice trade opportunities this week.
DXY is resuming its uptrend as it retests resistance at 95. If it breaks 95, I’m looking at 95.5 as the next level of resistance.
Last night as DXY tried its lower TL we saw a breakout on the UJ chart. I expect a bigger breakout on DXY very soon.
While the lower TFs show an uptrend, we need to remain cognizant of the Weekly and Daily TFs. In Janurary DXY made a lower low when it touched 88. Since it’s had trouble breaking the resistance at 95, it’s becoming more and more likely that it will try its last low again, or at least the support at 92.