As of Jan '21, the US Dollar 💵 had one of the most crowded trades in the world. Since then, higher US YIELDS have forced banks and hedge funds to unwind more than $25 billion in the short trade.
However, the DXY is expected to go lower in the following 2021 quarters, economic recovery and sped-up vaccination efforts still threatens further gains for the dollar hurting gains made be the equity & Commodities markets.
It looks like the bottom of your zag goes too low at the 92.50 area and should be higher at the 92.90 area, leading dxy to 95.
GrizzlyBearBee
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@EmptyEternity yes... It seems logical for the previous support level to be tested. However, if the DXY momentum is stronger, the 92.90 is the best area to open a long position.. Thanks for the contribution