Mihai_Iacob

DXY- FED has spoken, now what?

Short
TVC:DXY   U.S. Dollar Index
DXY is in an uptrend in the long term, and this is clear. However, in the short term looks tired and in the need of a correction.
December rise is anemic and overlapping and this correction could happen soon.
As we see the posted chart, 97 acted as a strong ceiling and at this moment we have 2 support levels to keep in mind.
The first one is the ascending trend line and the second is the horizontal support from 75.80. Once the second support is broken we can also have a confirmation for a deeper correction and the index can drop of around 1 point to very important support at 95.50.
This drop of more than 1.5% can translate into a rise in pairs like EurUsd, GbpUsd, AudUsd and NzdUsd of 200 pips or so.
I will look to buy dips for these pairs

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