Trade: USD/*** - short, ***/USD - long
The target for US dollar index: 90.56
We found out that the US dollar index price and RSI show the same "pattern" as Bitcoin did at the beginning of 2021.
Actually, it looks like this "pattern" appears on many charts nowadays, and usually, it works equally every time. Here is how this construction looks like: during an uptrend the price sets new highs, but the RSI moves in the declining channel. At some point, a lower high appears on the chart price. It means that buyers do not show a previous interest in this asset as they did before, that is the first sign of upcoming reversal. After the price breaks through the previous low and drops down.
On the US dollar chart, this construction occurred. Moreover, the reversal wedge appeared, which is also a bearish sign.
To sum up, we believe in the dovish FOMC statement, which will send the US dollar index down to 90.56.
The target for US dollar index: 90.56
We found out that the US dollar index price and RSI show the same "pattern" as Bitcoin did at the beginning of 2021.
Actually, it looks like this "pattern" appears on many charts nowadays, and usually, it works equally every time. Here is how this construction looks like: during an uptrend the price sets new highs, but the RSI moves in the declining channel. At some point, a lower high appears on the chart price. It means that buyers do not show a previous interest in this asset as they did before, that is the first sign of upcoming reversal. After the price breaks through the previous low and drops down.
On the US dollar chart, this construction occurred. Moreover, the reversal wedge appeared, which is also a bearish sign.
To sum up, we believe in the dovish FOMC statement, which will send the US dollar index down to 90.56.