goodguy

US Dollar Index Long term review.Will resistance become support?

INDEX:DXY   U.S. Dollar Index
212 4 10
It's been about a year since I looked at the longer term view of the dollar. You can see that price has broke out above the major long term down trend line (dashed black line) which is usually quite bullish . But also there is a major long term negative reversal in the RSI which often (but not always) is bearish . If you are bullish you should expect the return of price to the trend line to be support and then further rise in the dollar (the kiss and run scenario)

Personally I favor a more bearish possibility that we are completing a very large sideways consolidation before a final crash. ( I have a similar view for gold             and silver             but with a final bullish rise.) If this is correct we will see price going below the dashed trend line. (I must warn you I was wrong once................actually many times)

What do you think???
Have a great Sunday. Goodguy.
jangseohee
7 months ago
how bout a surprise bounce up first?
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goodguy PRO jangseohee
7 months ago
Good point J. With such an important line I would expect some "hesitation" at the line. I appreciate your feedback
+1 Reply
Yahia.Awes
7 months ago
I agree with jangseohee, the channel has been kissed and tested multple times. Which resulted in a large rejection wick. In the monthly chart you can see this clearly. This horizontal level is also a multiyear pivot. Personally I think this won't be broken this year, if it does, the dollar might reverse big time.

snapshot
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goodguy PRO Yahia.Awes
7 months ago
Thanks for the feedback.
Reply
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