The DXY Index has seen a spectacular move since the start of its recent uptrend in May 2021 - >10% in under a year. The move has been aggressive, offering very little in the way of pullbacks. However - we are starting to see the first signs that the index may be due some consolidation, namely:
1) Large extension from 200-day SMA (yellow)
2) Overbought RSI
3)...
The 97.80 lateral support held, and the DXY Index is within a whisker of touching our target of 100 - highlighted by us earlier last month. The small bull flag break may give the dollar the legs it needs to keep running.
GBPUSD broke its upward sloping support line in June 2021 and has been trading in a downtrend ever since. The change of trend was also signalled by bearish RSI divergence. For now - the trend remains in place and first sign of change will be a daily close above 1.32. Through 1.30 targets 1.2730.
A chart that many South Africans will be watching with interest. The confirmed break of the inverse H&S in November set up a full target of 17.00. The pair quickly tested 16.30 before consolidating within an asymmetrical triangle. Consolidations are healthy, and will allow USD to gather some steam before next surge higher. However, currently, USDZAR is testing...
DXY has been trading in nice uptrend since beginning of June - Bouncing a number of times off its upward sloping support. Last week Friday saw the massive break through lateral resistance at 97.80 & successfully re-tested and held on Wednesday = bullish. As long as 97.80 holds, the next area of resistance is around the 100 handle. However, through 97.80 brings...
