The Dollar Index (DXY) is showing a potential double top formation in progress on a daily chart.
DAILY (D1)
Ongoing downside price action, after having, yesterday, broken both the Tenkan-Sen and the Mid Bollinger Band, this morning
the DXY is attempting to also breakout the Kijun-Sen which should be seen as the last important support level in that time frame.
A failure to hold above it (95.96) would directly put the focus on lower levels, towards 95.51 which is the trigger level of the double
top formation in progress and if broken would activate this reversal formation calling for a technical target @ 94.09 which is, currently, also the
clouds bottom support area on this daily time frame.
WEEKLY (W1)
Still in an ongoing uptrend but lack of follow through, confirmed by several "dojis" in a row is likely to trigger a trend reversal!
In addition, the 50 % Fibonacci retracement @ 96.10 has been filled but, so far, each upside continuation attempt has been rejected.
In that weekly time frame, the next significant support is @ 95.11 and a failure to stay above it would be an additional warning signal, calling for further downside towards
the double top technical target @ 94'09 above mentioned, which also coincides with the weekly cluster support level of MBB and KS.
MONTHLY (M1)
The DXY failed on the last monthly closing basis (in November) to upside breakout the clouds resistance area !
Therefore, December monthly closing should be watch at very carefully and that will give more clues for the upcoming months on a long term view.
Finally, watch carefully price action on shorter intraday time frames which will help you to validate or invalidate my technical view.
CONCLUSION :
Only a sustainable recovery, on a daily basis closing observation, above the 97.00 area would force to a reassessment of my expected bearish scenario.
DAILY (D1)
Ongoing downside price action, after having, yesterday, broken both the Tenkan-Sen and the Mid Bollinger Band, this morning
the DXY is attempting to also breakout the Kijun-Sen which should be seen as the last important support level in that time frame.
A failure to hold above it (95.96) would directly put the focus on lower levels, towards 95.51 which is the trigger level of the double
top formation in progress and if broken would activate this reversal formation calling for a technical target @ 94.09 which is, currently, also the
clouds bottom support area on this daily time frame.
WEEKLY (W1)
Still in an ongoing uptrend but lack of follow through, confirmed by several "dojis" in a row is likely to trigger a trend reversal!
In addition, the 50 % Fibonacci retracement @ 96.10 has been filled but, so far, each upside continuation attempt has been rejected.
In that weekly time frame, the next significant support is @ 95.11 and a failure to stay above it would be an additional warning signal, calling for further downside towards
the double top technical target @ 94'09 above mentioned, which also coincides with the weekly cluster support level of MBB and KS.
MONTHLY (M1)
The DXY failed on the last monthly closing basis (in November) to upside breakout the clouds resistance area !
Therefore, December monthly closing should be watch at very carefully and that will give more clues for the upcoming months on a long term view.
Finally, watch carefully price action on shorter intraday time frames which will help you to validate or invalidate my technical view.
CONCLUSION :
Only a sustainable recovery, on a daily basis closing observation, above the 97.00 area would force to a reassessment of my expected bearish scenario.
