DXY daily bearish engulfing candle & clear rejection at downtrend line. DXY has also rejected off previous 2020 yearly low just like in September 2020.
This as the market is pricing in Biden's new $1.9 trillion stimulus plan which is getting closer to approval. Any delays in stimulus talks will likely cause a reversal in sentiment and the US Dollar Index.
Monthly view:
DXY doesn't fall out of a multi-year rising channel only to print a reversal & jump back in after a few months.
As soon as the $1.9 trillion stimulus passes the next leg down begins.
Target 88.
NB: If/when DXY does continue higher a retest of 92.25 will be a key area to watch and has been for decades. I would expect a rejection at 92.25 in the first instance. I will only become overly concerned & start to think about closing equities after a monthly close above 92.25 - this will be the sign this debt fueled market may be topping or at least due to cool off.
This as the market is pricing in Biden's new $1.9 trillion stimulus plan which is getting closer to approval. Any delays in stimulus talks will likely cause a reversal in sentiment and the US Dollar Index.
Monthly view:
DXY doesn't fall out of a multi-year rising channel only to print a reversal & jump back in after a few months.
As soon as the $1.9 trillion stimulus passes the next leg down begins.
Target 88.
NB: If/when DXY does continue higher a retest of 92.25 will be a key area to watch and has been for decades. I would expect a rejection at 92.25 in the first instance. I will only become overly concerned & start to think about closing equities after a monthly close above 92.25 - this will be the sign this debt fueled market may be topping or at least due to cool off.
Comment:
Printed a bearish engulfing candle on the weekly too
Comment:
Daily close may be cause for concern but waiting to see how the rest of the week develops and how weekly closes
