DXY Approaching the the July Resistance. Critical test.

The U.S. Dollar Index (DXY) is on a 2 week uptrend following our last analysis, centered around the 2022 Bullish Megaphone:


As you see, both the Higher Lows (1) trend-line (the Megaphone's bottom) and the 1D RSI Support held, and the price initiated this strong rebound. The critical level is now the 109.300 Resistance of the July 14 High and the RSI Resistance Zone. A break above both, would be a bullish break-out signal, targeting the 2.0 Fibonacci extension, a little below 114.000, which is the Fib level that all Higher Highs within the Megaphone have targeted.

On the other hand, only a break below the Higher Lows trend-line and the 1D RSI Support, can be taken as a bearish break-out signal, in which case we can target the 1D MA200 (orange trend-line) for the first time since June 17 2021.




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