DXY - will we see a bullish divergence?Hello, dear traders. We can observe an interesting situation on the Dollar Index.
What we see:
1. An uptrend on the weekly timeframe.
2. The price is at the support level.
3. Over the 18 years of this trend, all impulses from the support level originated after MACD divergence. For divergence, we need at least two troughs, but now we are seeing only one.
Therefore, I expect another decline in the Dollar Index with an update of the low on closed weekly candles. After that, for a reversal according to my author's FRL concept, it is necessary to form a multi-day reversal pattern. At the moment, the neck level is at 100.200, as this is where the last impulse of the last downtrend originated. If the price does indeed update the low and form a divergence, the neck level will be at 99.500.
How do you rate this idea and what are your thoughts on it?
