DXY appears to be bearish despite a downward channel breakout
DXY made a pump from the area last idea mentioned. Despite making a noticeable upward move, the precious metals market seemed unfazed and managed to defend previous bottom areas well. Now it appears more likely that Dollar is not able to sustain the rally, and the arrows indicate potential downward move areas. A bounce from these areas is possible
Feds continue to hold a dovish policy and the ECB has indicated it won't target fx rates, meaning the euro rally can continue unfazed. But technicals wise the Euro weekly briefly touched overbought zone and weekly rsi appeared to bounce from oversold areas.
Overall DXY and gold are still choppy, but now its more in favor of $ bears and gold/silver bulls for the short term
Bullish Scenario:
DXY manages to bounce from 92.94 , and at most 92.54 and rallies to new highs
Bearish Scenario: DXY breaks 92.5, Then downward channel lows likely target ares
How to Play
Long:
Consider gold/silver longs if one is bearish on the dollar. If one is wanting a more sure trade, wait for a break of 1968-1971 on the gold cfd ( or long silver once gold breaks that area ), and check for the DXY breaking the 92.5 area.
Short:
Close and Avoid entering new metal shorst for now, wait for a rebound in the 92.94 area or 92.5 area at most. If a rebound is seen from those areas , re enter a short. If no rebound occurs those area, only enter a new short near the downward channel low area.
Feds continue to hold a dovish policy and the ECB has indicated it won't target fx rates, meaning the euro rally can continue unfazed. But technicals wise the Euro weekly briefly touched overbought zone and weekly rsi appeared to bounce from oversold areas.
Overall DXY and gold are still choppy, but now its more in favor of $ bears and gold/silver bulls for the short term
Bullish Scenario:
DXY manages to bounce from 92.94 , and at most 92.54 and rallies to new highs
Bearish Scenario: DXY breaks 92.5, Then downward channel lows likely target ares
How to Play
Long:
Consider gold/silver longs if one is bearish on the dollar. If one is wanting a more sure trade, wait for a break of 1968-1971 on the gold cfd ( or long silver once gold breaks that area ), and check for the DXY breaking the 92.5 area.
Short:
Close and Avoid entering new metal shorst for now, wait for a rebound in the 92.94 area or 92.5 area at most. If a rebound is seen from those areas , re enter a short. If no rebound occurs those area, only enter a new short near the downward channel low area.
