Fundermentally the US is preparing for a very critical ELECTION, they are also one of the most affected countries with the COVID 19 pandemic, congress is due to have a final decision on the stimulus package. There is a lot to watch out for on the dollar and it has been trading down for the past few weeks.
Technically we have reason to favor a reversal on the DXY looking at the last week's price actions
1) It just recently broke above the 200 period moving average on the 4h time frame, and that usually indicates some movement in the direction of the break in this case which is a break up.
2) Looking at S and R we broke above the 93.00 level, and it has been retested and held as support.
3) Looking at structure and price action, we have left from lowers lows and we are currently seeing the formation of higher highs and higher lows which is also an early indication of an upwards trend reversal.
4) Our MACD 4C, has moved from being below the median line and is now seeing price above the median line in the green zone.
Putting all of these factors together, we are going for a short term bullish movement on the DXY up to the 96.00 level, from much update will be made. Not withstanding a break below the 93.00 will see price probably continue low to the 92.00.
Technically we have reason to favor a reversal on the DXY looking at the last week's price actions
1) It just recently broke above the 200 period moving average on the 4h time frame, and that usually indicates some movement in the direction of the break in this case which is a break up.
2) Looking at S and R we broke above the 93.00 level, and it has been retested and held as support.
3) Looking at structure and price action, we have left from lowers lows and we are currently seeing the formation of higher highs and higher lows which is also an early indication of an upwards trend reversal.
4) Our MACD 4C, has moved from being below the median line and is now seeing price above the median line in the green zone.
Putting all of these factors together, we are going for a short term bullish movement on the DXY up to the 96.00 level, from much update will be made. Not withstanding a break below the 93.00 will see price probably continue low to the 92.00.