Fida4u

DXY may still have some upside

Long
TVC:DXY   U.S. Dollar Index
The dollar index looks to still have some upside left before it rolls over. I expect it to trade sideways to slightly down for a short period of time, perhaps tagging the 50 DMA before resuming its uptrend into my yellow target box. The fundememtals are not supportive of a huge dollar rally from here, especially with a 3 trillion dollar infrastructure bill on the cusp of being passed, although i do believe the market tops out at the end of this year. Keep in mind that on the shorter time frames , there is some bullish divergence building. The RSI is reaching for the oversold territory, refueling for the next move up. Note the large falling wedge that the dollar broke up from, the sheer size of the structure gives credence to another leg up. If the dxy has another leg up then rolls over, the commodities complex will have a huge rally , putting to rest any doubt that inflation will subside soon.

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