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fassassi
Feb 12, 2023 8:31 PM

$DXY at Major Resistance Short

U.S. Dollar Currency IndexTVC

Description

The USDXY is at two major resistance levels. An 80-day resistance and a 430-day resistance.



This is very important to understand a likely high timeframe trend for risk-on assets like cryptocurrencies because, as we all know, the DXY is almost perfectly inversely correlated to Bitcoin and the cryptocurrency market.

Here are those resistance levels on a higher timeframe.



As you can see, these are legitimate trendlines, as price has respected them for a considerable amount of time.

On a smaller timeframe, the DXY is indeed overbought, and so I would expect a gap up at today's opening, followed by a significant move down.

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