DXY appears to be respecting a weekly channel for exactly 2 years now (since Sep 2017).
It is also within a rising wedge on the daily chart. A breakout of the wedge will drive it to bottom of the channel, resulting in sharp moves for all USD pairs.
The catalyst for a breakout of the daily wedge could be something like big US-China trade deal/no-deal announcement. And catalyst for the weekly channel breakout could be an event like US presidential elections (Nov, 2020) or a definitive recession.
Meanwhile, if no big events/announcements, it is safer to scalp the wedge/channel or use this chart as a guide when trading USD pairs.
It is also within a rising wedge on the daily chart. A breakout of the wedge will drive it to bottom of the channel, resulting in sharp moves for all USD pairs.
The catalyst for a breakout of the daily wedge could be something like big US-China trade deal/no-deal announcement. And catalyst for the weekly channel breakout could be an event like US presidential elections (Nov, 2020) or a definitive recession.
Meanwhile, if no big events/announcements, it is safer to scalp the wedge/channel or use this chart as a guide when trading USD pairs.