(Not Financial Advice, trade at your own risk, the following is my own opinion)
Probably the most important chart in the world, the EUR/USD, which makes up over half of the DXY. The euro has had an impressive run against the dollar in the last year. The trend is starting to reverse with the head and shoulders pattern being played out over months. I count 3 sets of shoulders in what is looking like a symmetrical move The DXY is in an upward channel (currently at the low of its channel) for the first time in a very long time.
How this plays out with the US & EURO Monetary policies is unknown as we are in uncharted territory. Remember not everything is perfectly symmetrical, this could reject and move higher based on a number of things. Though currently, it looks like its setting up for another leg down.
Probably the most important chart in the world, the EUR/USD, which makes up over half of the DXY. The euro has had an impressive run against the dollar in the last year. The trend is starting to reverse with the head and shoulders pattern being played out over months. I count 3 sets of shoulders in what is looking like a symmetrical move The DXY is in an upward channel (currently at the low of its channel) for the first time in a very long time.
How this plays out with the US & EURO Monetary policies is unknown as we are in uncharted territory. Remember not everything is perfectly symmetrical, this could reject and move higher based on a number of things. Though currently, it looks like its setting up for another leg down.