We predicted correctly that the price is gonna move up from the mid channel support line. However, the pattern is extremely messy and there's no clear direction formed on this pair and now it looks like it's going to dump. We're neutral on the short term direction of DXY. But the long term direction is up once the fed raises interest rates next year.
BEAR CASE
Price will dump to the mid channel support line at around 93.7 and spend some time there before dumping farther down. If we see a strong rebound from there, we will adopt the bullish stance.
BULL CASE
If price reacts strong off the mid channel support line, we will take the long trade to upside and hopefully exit at the top of the channel. This long trade will not be easy. Structurally it favours the downside.
BEAR CASE
Price will dump to the mid channel support line at around 93.7 and spend some time there before dumping farther down. If we see a strong rebound from there, we will adopt the bullish stance.
BULL CASE
If price reacts strong off the mid channel support line, we will take the long trade to upside and hopefully exit at the top of the channel. This long trade will not be easy. Structurally it favours the downside.