The DXY broke 3 out of the 4 levels that we marked out last week. This could be the low for the pair but we will not be surprised if it pushes down another leg to break the 91.500 level before it continues its uptrend. The macro landscape looks to rising bond yields and a strong dollar as all the money lent out during COVID needs to find its way back to its lenders.
BULL CASE I think we will see price correct to the upside early next week and in the month of August. If the bears find momentum, the 91.5 may be visited. Otherwise, the low is in and the DXY is ready to appreciate against the basket of foreign currencies.
BEAR CASE Price shortly corrects upwards and goes down to visit the 91.5 level before reversing to the uptrend.