DXY daily yesterday finished above 50 days MA and more important above the trend line which was mentioned in the last few reports, the trendline which was formed in summer 2021. If the dollar continues its move and doesn't get rejected from this level, it would represent extreme power for the dollar as a drop below that trend line would count only as a fake out/ dead hook which would be very bullish for the dollar for several next weeks. To make it easier, what was supported before is now resistance (that trend line), and if the dollar breaks that resistance it will be again support and now even stronger than before due to that fake out.
On the other side, if the dollar gets rejected from this level, it will continue to drop and it will be a hard drop for the dollar.
This move above that resistance was a very bullish move. The last 3 days' dollar is at the fire. If it continues like this, the market will have a major drop for sure, but it needs to stay above 50 days MA next few sections, consolidate at that Cleveland then continue its move up, otherwise, it would be only bear pull back and the dollar would fall further. However, chances for this to be only a bull pullback are low because this 3 days move was a very impulsive move.
I am pretty sure today this move will be clarified with Powel's speech.
On the other side, if the dollar gets rejected from this level, it will continue to drop and it will be a hard drop for the dollar.
This move above that resistance was a very bullish move. The last 3 days' dollar is at the fire. If it continues like this, the market will have a major drop for sure, but it needs to stay above 50 days MA next few sections, consolidate at that Cleveland then continue its move up, otherwise, it would be only bear pull back and the dollar would fall further. However, chances for this to be only a bull pullback are low because this 3 days move was a very impulsive move.
I am pretty sure today this move will be clarified with Powel's speech.
Consistency is the key of success....
