DXY: Dollar Index near term weak, underlying strong
DXY Dollar Index Update
The Dollar is trading sideways in a trader-friendly range as it
unwinds an overbought condition after the recent near 2%
rally, particularly striking for the power of that big green
candle from the end of October, from 93.50 dead.
It's a classic continuation pattern, signalling further Dollar
strength in store in a few days' time. However in the nearterm
DXY should continue sideways to down from here, giving mild
sustenance to the pairs for a while longer, though all are only
making corrective or continuation patterns prior to further
weakness as the Dollar unwinds this overbought condition.
DXY should fall back to 94.41 and then bounce again, moving
sideways - maybe until 15th November where it meets the
rising support line from the lows and should then begin to
rally again. For this picture of underlying Dollar strength to
change DXY would have to break below this trendline -
unlikely as things stand and looking at that bear engulfing
large green candle.
The Dollar is trading sideways in a trader-friendly range as it
unwinds an overbought condition after the recent near 2%
rally, particularly striking for the power of that big green
candle from the end of October, from 93.50 dead.
It's a classic continuation pattern, signalling further Dollar
strength in store in a few days' time. However in the nearterm
DXY should continue sideways to down from here, giving mild
sustenance to the pairs for a while longer, though all are only
making corrective or continuation patterns prior to further
weakness as the Dollar unwinds this overbought condition.
DXY should fall back to 94.41 and then bounce again, moving
sideways - maybe until 15th November where it meets the
rising support line from the lows and should then begin to
rally again. For this picture of underlying Dollar strength to
change DXY would have to break below this trendline -
unlikely as things stand and looking at that bear engulfing
large green candle.