On the bigger picture, Dxy still bearish. However, upside momentum accumulating with higher lows and trendlines crossings. Imho, Dxy is not bullish until it closes above 94.40 area for at at least a couple of weeks, better yet a monthly candle would seal the deal.
This is a 5 year chart with 2 different trends. Break of any trend line would seal a deal until end of this year or maybe into 2022. If dollar strength continues, euro will move toward 1.14 area, and much of dollar strength is depended on Yields and the equity market. Atm, imho, the equity market is like spinning top, anytime now!!!!
Investors need dollar to buy more stocks. Will there be a fire sale on stock market to supply investors with more dollar, only to turn around and buy more stocks and drive it up to $40,000+....not out of picture at all!
Dxy for the most part has not gone anywhere besides ranging between 60-70 pips on weekly pa range. Where to now? Even though it looks like that Dxy is on it's way to 88.40, I would hesitate to endorse that until I see a break and close below yearly open. So for now I am neutral on Dxy with a cautious upside preference.
Yes, Dxy bounced off a solid support...however! she needs to close today or maybe tomorrow to have any hope of a limited upside in a downtrend. Don't think that she won't surprise you with a visit to 88.40, that number is still in the picture. For Dxy to get any bullish momentum we need at least 2 days of closing above 91.23. Cheers.
Dxy managed to close, 50-100 pips above or below are normal movements, exactly on yearly closed and March Covid madness. Though all signs point to strength in US dollar, I remain guarded till close of coming weekly candle. It is without saying that Dollar remains the only reliable currency in high demand, walking on egg shells, nonetheless.