FX618Analysis
Short

FED's Easing Cycle Has Opened Path for DXY To HIT 93.00 Level !

TVC:DXY   U.S. Dollar Currency Index
For the last several months we have seen the USD rise against all major currencies and while this was happening we were technically starting to get warning signs of BEARISH DIVERGENCE in the RSI! Fundamentally the US Economy remained strong back then with little worries regarding the trade war and geopolitical issues.

The markets thought that the economy wont be impacted by the trade war in a long run as a trade deal could be reached soon but its been months and the saga still goes on. The US economic data has been under achieving and the FED instead of raising rates to a possible two times this year has switched its course to cutting them. A MAJOR DOVISH SWITCH!

As this happened, the USD Index fell from the highs and has now comfortably broken the triangle's lower trendline and the weekly price has also closed below the EMA 50. All this indicates a strong trend switch is now in play and we could see the price potentially drop towards 93.00 where the next trendline is present. 93.00 also is a concrete support drawn from the monthly charts which has been respected on numerous occasions.

As the time goes, the picture will be more clear and clear but one thing is clear, FED's easing cycle will surely be the main driver for DXY downfall to 93.00!

Many predicted that the yellow metal will rise this year and boy they were not wrong as many major central banks have switched to easing cycle. Should the FED keep easing to support the economy we could see the yellow metal reach new highs and SAFEHAVEN FX currencies such CHF and JPY Appreciate against other currencies.
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