Very interesting, so DXY broke up from the failing wedge that was ending in 98.8 area and had a massive breakout so the next short term target i expect on DXY is 100.6. I expect that here a wedge-bear flag might be in play, so i am bearish on DXY, not just form TA but also from fundamental perspectives.
We got a 61.8% retracement move i drew the fib from the gap candle so we can see why we got a bounce and i discovered that from 61.8% fib retracement, and we got a good bounce from that fib level.
I want to say that we have a higher low and we shall see if we make a lower high (C),if we get rejected from 100.6 we might go back to 0.5% fib level (D) and after that one more wave (E), and then the interesting things will start to happen.
If the price will respect the (A-E) targets i expect 96.94 (bearish scenario) or 102.3 ( bullish scenario).
My personal opinion is that we will go down,but we might fill the gap at 102.3 first.
But i am bearish on DXY in the mid to long-term.
We got a 61.8% retracement move i drew the fib from the gap candle so we can see why we got a bounce and i discovered that from 61.8% fib retracement, and we got a good bounce from that fib level.
I want to say that we have a higher low and we shall see if we make a lower high (C),if we get rejected from 100.6 we might go back to 0.5% fib level (D) and after that one more wave (E), and then the interesting things will start to happen.
If the price will respect the (A-E) targets i expect 96.94 (bearish scenario) or 102.3 ( bullish scenario).
My personal opinion is that we will go down,but we might fill the gap at 102.3 first.
But i am bearish on DXY in the mid to long-term.