Update: Breakout to Re-test or H/S Move to Lower Trend?
A simple, but major update to my previous post, below:
DXY is near a crucial decision point where it will either maintain it's long-term uptrend or decide to spend more time correcting. DXY also shows negative correlation with crypto and stock markets.
> Maintains Uptrend - if we see a successful re-test of the upper trendline after having broken above it, expect a move back above 112 to 115 -> 118+. This would make me consider going short in crypto and stock markets.
> Further Correction - that same re-test could fail via a successful Head/Shoulders pattern, and take DXY back down towards its lows around ~90. In this case, I'd expect further correction to the upside in crypto and stock markets.
Previous post:
DXY is near a crucial decision point where it will either maintain it's long-term uptrend or decide to spend more time correcting. DXY also shows negative correlation with crypto and stock markets.
> Maintains Uptrend - if we see a successful re-test of the upper trendline after having broken above it, expect a move back above 112 to 115 -> 118+. This would make me consider going short in crypto and stock markets.
> Further Correction - that same re-test could fail via a successful Head/Shoulders pattern, and take DXY back down towards its lows around ~90. In this case, I'd expect further correction to the upside in crypto and stock markets.
Previous post:
Comment:
Not a good sign for crypto and stock markets in breaking back above the H/S neckline here. If this gets/stays above the yellow line around 105, we're headed to 118+
