Is the DXY Poised for a Breakout?Analyzing the Bullish Potential

3 days ago

The DXY (US Dollar Index) appears to be on the verge of a significant upward rally. Last week, I shared my analysis highlighting a potential trigger point for a long entry, which the price subsequently surpassed, confirming the setup. According to the latest COT reports, commercial traders have reached their highest net positions of 2023. Historically, whenever commercials hit new highs, it often signals the beginning of a bullish trend in the DXY.

Additionally, we observe that many currencies measured against the dollar have weakened recently, supporting my thesis of a continued upward move for the DXY. Seasonal patterns also point toward a potential bullish phase.

Is this the moment for the DXY to initiate a strong bullish trend? Only time will tell, but the technical and fundamental signals are aligning in favor of a possible rally.

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3 days ago

Note

Previous analysis.