The DXY has been in a bull market recently and the monthly chart is forming a W pattern which could be interpreted as very bullish.
However, to me the DXY has been in a long term down trend since it started back in 1968. The current price is not far off the top of the downward grand super cycle channel drawn.
The fib level for shorting the DXY (golden pocket) is also in sight.
The recent trend also sees lower highs. There are higher lows but with divergence on the RSI.
If the DXY reverses after failing to make a higher high this would be very bullish for stocks in the medium term.
However, to me the DXY has been in a long term down trend since it started back in 1968. The current price is not far off the top of the downward grand super cycle channel drawn.
The fib level for shorting the DXY (golden pocket) is also in sight.
The recent trend also sees lower highs. There are higher lows but with divergence on the RSI.
If the DXY reverses after failing to make a higher high this would be very bullish for stocks in the medium term.