FullTimeTrader
Short

DXY (and SPX 500)-facing a monster resistance ¿will they crash?

INDEX:DXY   U.S. Dollar Index
428 1 12
I think the world market is at very decisive stage this months. We know fundamentally the USD is expected to gain strenght more and more with rising the interest rates.

But technically we see the price if facing strong levels of resistance, is extremely overbought and needs some correction before continuing the bullish trend .

Here is my long term SPX500             analisis
SPX 500 - Long term short bias - critical level 2100


Looking at this DXY             chart, the price is near a strong resistance where the 0.61 fib level is the star. We have also the very strong psycholevel 100 near.
A bearish crab could be also at play.
RSI extremely overbought.

I expect some correction at least to the 0.2360 fib retracement. Its interesting to see that the target fib levels coincides with important levels of S/R

Off course the scenario 2 is also possible: price breaks and close clearly above the 100 level, makes a pullback and continues the bullish trend ignoring all the technicals.

This is not a trade, watch closely the DXY             because this affects all the markets, especially the positive related pairs ( USDCAD             , USDJPY             , etc) and negative related pairs ( EURUSD             , EURGBP             )

Best regards

moneymaking
2 years ago
Nicely done mate :)
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