DXY seems to have broken the falling channel and breaking below the support line. Usually this pattern results in a bear trap in which buyers quickly soak up the excessively sold supply and rapidly turn it into demand.
While I am not a DXY bull, I do have to recognize that a relief rally to 93.2 is in the cards if it can get above the falling channel. From my experience, this pattern usually results in an explosive rally to the upside, which serves as a perfect opportunity for big money to run the stops of short sellers as they have been in profit for almost a month and their stops have not been tested.
While I recognize it can fall a bit further, I personally think we are close to a bottoming out as DXY has been pretty oversold the past few weeks with no real relief rally to speak of until now.
While I am not a DXY bull, I do have to recognize that a relief rally to 93.2 is in the cards if it can get above the falling channel. From my experience, this pattern usually results in an explosive rally to the upside, which serves as a perfect opportunity for big money to run the stops of short sellers as they have been in profit for almost a month and their stops have not been tested.
While I recognize it can fall a bit further, I personally think we are close to a bottoming out as DXY has been pretty oversold the past few weeks with no real relief rally to speak of until now.
Trade closed manually:
Looking for sub 88 get to hit, canceled and confirmed long term bearish targets to get hit soon.