There is a large 5 wave sequence for the DXY to reach higher highs. However, we need to see a drop in price to create the 4th wave before the move higher. Price had a nice run up in the past few weeks, but it reached a monthly resistance level, and retested the ascending trendline it broke out of back in March. Also, a bearish engulfing pattern at this zone of confluence. We should see a move down to 89.75 zone before the move higher.
Comment:
Monthly view.
Comment:
price went higher than expected, but the 38.2% is holding price. we have an expanding wedge pattern, indicating increased volatility. price will go higher, but it will fall first. the exhaustive candle and the bearish divergence shows pressure to the downside.
