DXY Forms a Contracting Triangle: Awaiting Breakout

Apr 15

DXY Forms a Contracting Triangle: Awaiting Breakout

On the 60-minute chart, DXY has developed a contracting triangle, which is typically a trend continuation pattern, suggesting a potential downward move.

However, since this consolidation is taking time and DXY’s price action remains complex, movement in either direction is possible.

The breakout will ultimately determine the next price direction, but based on current conditions, an upward move seems more likely in the near future.

You may find more details in the chart!
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Apr 16

Note

📣DXY Analysis: Uncertain Market Direction

Yesterday, the U.S. Dollar Index (DXY) formed a contracting triangle pattern, a setup that typically signals the next price direction upon breakout.

Initially, the price broke out bullish, climbing to 100.27, but soon reversed, validating the bearish setup and dropping to 99.34.

This kind of price action suggests market uncertainty—similar to how the market reacted during the U.S.-China trade war. When traders lack clear direction, false breakouts can occur, meaning DXY could rise again despite the recent bearish move.

At this stage, the market remains without a clear trend, so caution is advised.