DXY
On April 13, the U.S. Dollar Index (DXY) rebounded from the robust support level at 100.82, which suggests that the bulls are fiercely guarding this level.
Currently, the index has reached the 20-day EMA (102.32), and the bears may provide substantial resistance to the bulls at this point. If the price falls from the 20-day EMA, the likelihood of breaking below 100.82 will increase, and the index will complete a head-and-shoulders (H&S) pattern. This pattern has a long-term target objective of 86.87.
However, if the price surpasses the 20-day EMA, it will indicate that buyers are showing strength near the 100.82 support level. This could cause the index to remain range-bound between the 200-day simple moving average (SMA) (106.33) and 100.82 for some time, contrary to the aforementioned assumption.
Let me know what you think!
Follow me for more TA!
