DXY December 3rd

The DXY (US Dollar Index) exhibited a bearish trend across various timeframes last month. On the monthly chart, a pronounced bearish engulfing pattern unfolded, coinciding with a downward-sloping RSI below the midline at 49.58 and a MACD showing an increase in red bars. Zooming in on the weekly chart, despite clearing an old swing low from August, the price closed bearishly, with RSI trending down significantly to 39.65 and MACD printing larger red bars. The daily chart reveals a clear downward trend, marked by lower lows and lower highs, supported by a descending RSI converging with the price and a MACD with smaller red bars but well below its midline. Anticipating a potential break below the August 10th swing low at 101.784, attention is drawn to a further decline toward the July 27th swing low in the coming weeks. Conversely, an upward move would require breaking and holding above the Friday high at 103.335, potentially paving the way for a rally to the November 22nd swing high. Monitoring the non-farm payroll data scheduled for the upcoming Friday is advised, as economic indicators may influence these anticipated market movements.