MSKcapital

DXY BEARISH SPELL ON DAILY TIMEFRAME

Short
TVC:DXY   U.S. Dollar Index
DXY tracks the strength of USD in comparison to other currencies, when the index goes up, it's interpreted as strength and when it goes down, it's understood as weakness. This index is popular among traders to interpret the future of other assets (DXY down= BITCOIN up). The confluence of multiple lenses is signalling a bearish spell of the US dollar against other assets on a daily time frame. First, the price action is forming a rising wedge pattern which usually is seen as a first bearish signal, a break of which could lead to the retest of 128MA that currently stands at 99.5. Secondly, higher high of the price action with lower low of RSI indicates a bearish divergence. Third, MACD shows the end of bullish momentum as noted in the decline in size of histograms as it reaches the zero line + MACD line crossing from above to below the signal line + bearish divergence. As such, it is concluded that probability of the DXY going down is highly likely which could lead its negatively correlated pairs to a bear market rally of risk on assets.

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