DXY is testing the top of the downward trendline and the July high of 103.578 which coincide with the 200-day MA level of 103.216.
The DXY is looking quite overbought at the moment according to the RSI so a pullback towards the critical 61.8% Fibo retracement level of 102.277, which coincides with the 50-day MA level of 102.185, seems very likely. A failed break below the 50-day MA will be massively bullish for the DXY which will allow the index to create another 5-wave impulse towards the 2023 high of 106.00.
A break below the 50-day MA will however invalidate the idea.
The DXY is looking quite overbought at the moment according to the RSI so a pullback towards the critical 61.8% Fibo retracement level of 102.277, which coincides with the 50-day MA level of 102.185, seems very likely. A failed break below the 50-day MA will be massively bullish for the DXY which will allow the index to create another 5-wave impulse towards the 2023 high of 106.00.
A break below the 50-day MA will however invalidate the idea.