DXY has suffered a pull back in recent weeks due to a number of factors and now finds itself in an interesting position
PA is now on its long term "Cup" line of Support, which historically, in the 3 Cups DXY has produced since 1971, have NEVER been broken.
So likelyhood is that PA will bounce soon, likely not till April opens, but bounce it will.
But there us resistance close by overhead as it approaches the neckline of this Cup pattern, which was broken once only.
PA has formed an ascending channel that it has been restricted by since 2008 and PA is mod way between the upper and Lower lines
PA also has bounced off the 0.5 Fib retracement, as is a habit historically and has just been rejected by the 0.618/ Where now ?
MACD on this MONTHLY chart has just turned BEARISH and is unlikely to be a fake out.
SO, long term outlook for DXY is not Rosy but still has the ability to maybe reach higher than 110 in time before it turns over fully and begins the 4th Cup around Spring 2025
Until then, if it says in this ever shrinking triangle between Neckline and Cup, volatile maybe on a month to month basis
It should be noted that each of the 3 "Cups" made since 1971 has been Deeper and longer than the previous and with the world turning away from the $ as a currency for international settlements, I do not see why this will not happen again
PA is now on its long term "Cup" line of Support, which historically, in the 3 Cups DXY has produced since 1971, have NEVER been broken.
So likelyhood is that PA will bounce soon, likely not till April opens, but bounce it will.
But there us resistance close by overhead as it approaches the neckline of this Cup pattern, which was broken once only.
PA has formed an ascending channel that it has been restricted by since 2008 and PA is mod way between the upper and Lower lines
PA also has bounced off the 0.5 Fib retracement, as is a habit historically and has just been rejected by the 0.618/ Where now ?
MACD on this MONTHLY chart has just turned BEARISH and is unlikely to be a fake out.
SO, long term outlook for DXY is not Rosy but still has the ability to maybe reach higher than 110 in time before it turns over fully and begins the 4th Cup around Spring 2025
Until then, if it says in this ever shrinking triangle between Neckline and Cup, volatile maybe on a month to month basis