DXY @difficult CH median; may retest TL@100 or 97 channel base
When DXY dollar index peaked on 16Mar2020 at around 104, it created an easy bull market for equities, risk assets & commodities specially gold. Will it again peak now at 104?
DXY has been in a strong upchannel since the low of 2009 & since 2018, has always failed to pass thru the median line of this channel. Now it may again be rejected at this median around 103 to 104 & retrace back to 100 support zone & also an uptrend support line. If 100 fails, DXY may go down to retest 97 at the base of this big channel before resuming uptrend. This will be give affected markets mentioned above a chance to reverse up & rally.
For now it seems DXY wants to go higher. I think it will top out at the 107-108 area when the median line of this 2009 channel intersects the upper line of a big red downchannel from 1986. By that time SPX may
have already reached its final destination at 3800 & buyers start to FOMO in.
Not trading advice
DXY has been in a strong upchannel since the low of 2009 & since 2018, has always failed to pass thru the median line of this channel. Now it may again be rejected at this median around 103 to 104 & retrace back to 100 support zone & also an uptrend support line. If 100 fails, DXY may go down to retest 97 at the base of this big channel before resuming uptrend. This will be give affected markets mentioned above a chance to reverse up & rally.
For now it seems DXY wants to go higher. I think it will top out at the 107-108 area when the median line of this 2009 channel intersects the upper line of a big red downchannel from 1986. By that time SPX may
have already reached its final destination at 3800 & buyers start to FOMO in.
Not trading advice