US Dollar Index is bullish. Recently, it has arrived at a new high since 2004. Therefore, we need to carefully watch the current price action to see whether the price will close above the resistance level at the end of this week. If the price clearly closes above, then we expect further bullish continuation for DXY. This could lead to a prolonged bearish movement for EURUSD, GBPUSD, and AUDUSD and also a further bullish continuation for USDJPY, USDCHF, and USDCAD. Therefore, we don’t suggest blindly pick tops and bottoms for those major USD pairs.
For us to identify a potential bearish reversal for DXY, we need to first see a strong bearish impulse, followed by a formation of a bearish continuation structure, such as a bearish flag, a bearish pennant, or a bearish rectangle. Then a breakout from one of those structures will suggest a possible bearish reversal. However, as of now, we could not forecast a possible bearish reversal in the near future.
For every retracement/correction is a good buy opportunity.
For us to identify a potential bearish reversal for DXY, we need to first see a strong bearish impulse, followed by a formation of a bearish continuation structure, such as a bearish flag, a bearish pennant, or a bearish rectangle. Then a breakout from one of those structures will suggest a possible bearish reversal. However, as of now, we could not forecast a possible bearish reversal in the near future.
For every retracement/correction is a good buy opportunity.
