Keeping it simple, the dollar index has been on a tear, but things are getting pretty interesting. So, here goes:
1. We broke above the Jan '17 high, but so far have failed to experience follow through to the upside 2. What is occurring is important, but where it is happening, even more so 3. Prices are currently forming a doji on the monthlies (not sure how it'll look at the end of the month) with an outsized upper shadow (lack of buying interest or simply put, a selling tail). That it is happening near the 2017 highs is a red flag 4. The inside pitchfork drawn from the GFC lows to the 2017 highs is offering resistance now 5. The upper parallel line of a channel constructed by connecting the 2018 and 2021 lows is also going to be resistance soon 6. The 38.2% fib retracement off the 1985 top and the 70.7% harmonic retracement from the 2001 head and shoulders top are clustering tightly in the 106 area, not too far away from recent highs
Thank you for your post! Monitoring closely due to inverse relation with BTC (potential swing trade on a bounce to retest 200dsma) Stoch RSI looking like a bearish cross on the 5 day with some bearish momentum on MACD as well, though we got few more days for the candle close. If it plays out, i'd look for support on the upper trendline that connects the higher high (jan '17) and lower high (03-05 -2020), the DXI broke out of.
CMT_Association
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@Saf_h Pleasure. You make some very good observations above. Thank you.
Iarouando212
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you can make quite a bit of money in this corridor