Ever since late March, the Dollar index has been trending lower, and I think the downtrend for the index is near the end. Looking at the weekly chart, the price has been trending at the same range for the past five weeks. Not to mention, the current price range is at a critical support level, and I suppose that to be a consolidation before the next trend takes place. In my opinion, the next trend will be to the upside. Giving the fact a falling wedge has formed. Additionally, the RSI has almost bottomed, and it's way oversold.
If we see a rally in the dollar index soon, it will have tremendous pleasure in the U.S. indices. Most likely, we will see a similar market sell-off to the one we had at the beginning of February.
Other than technical, the chairmen federal reserve, Jerome Powell, is set to give a speech tomorrow and this could be another catalyst to move the dollar index higher.
If we see a rally in the dollar index soon, it will have tremendous pleasure in the U.S. indices. Most likely, we will see a similar market sell-off to the one we had at the beginning of February.
Other than technical, the chairmen federal reserve, Jerome Powell, is set to give a speech tomorrow and this could be another catalyst to move the dollar index higher.
Comment:
Here we go, the $ index starts to pop to the upside.