DXY - TP1, TP2 or to the Top?
Updated
Hey hey!
Here we back again with another analysis, lots is going on lately, and we gathering more and more evidences pointing into a trend shift for the dollar, so I'm going to update DXY analysis from last time.
The chart speaks for itself but let's try to add a little commenting to back it up.
DXY has been taping the 115 level pretty strongly last september, and that's what started its correction all the way to the 100+ level. Since then, we're just crushing all the resistances up one after the other.
Fundamentals have been highly bullish for USD lately, the main component being that inflation doesn't want to do what the Fed expects it to do. Instead of getting back under 2% like expected, it's being way more sticky, and the economy has been resilient to the Fed's interventions trying to slow it.
We were expecting one last rise of the interest rates but now, looking at fresh datas, the consensus tends to say that there are going to be two more. And that translates into the chart into a strenghtening of USD. We're almost certain of one thing now, rates will be higher longer than expected.
From a TA point of view, the major event that happened last week was the break of the descending channel, a nice and clear breakout. So, knowing this, it would be logical for DXY to go and get these highs, the first one being at 105.5 and the second is sitting at 108.
We'll see how far the market wants to take DXY, but 108 is a strong resistance as you can see on the chart.
For now on, I'm bullish on USD, and will try to buy the dips until we get to 105.5 first, then we'll see how the market reacts, and if more buying pressure is steaming then we'll help to push prices all the way to 108
Cheers everyone and safe trading!!!
Here we back again with another analysis, lots is going on lately, and we gathering more and more evidences pointing into a trend shift for the dollar, so I'm going to update DXY analysis from last time.
The chart speaks for itself but let's try to add a little commenting to back it up.
DXY has been taping the 115 level pretty strongly last september, and that's what started its correction all the way to the 100+ level. Since then, we're just crushing all the resistances up one after the other.
Fundamentals have been highly bullish for USD lately, the main component being that inflation doesn't want to do what the Fed expects it to do. Instead of getting back under 2% like expected, it's being way more sticky, and the economy has been resilient to the Fed's interventions trying to slow it.
We were expecting one last rise of the interest rates but now, looking at fresh datas, the consensus tends to say that there are going to be two more. And that translates into the chart into a strenghtening of USD. We're almost certain of one thing now, rates will be higher longer than expected.
From a TA point of view, the major event that happened last week was the break of the descending channel, a nice and clear breakout. So, knowing this, it would be logical for DXY to go and get these highs, the first one being at 105.5 and the second is sitting at 108.
We'll see how far the market wants to take DXY, but 108 is a strong resistance as you can see on the chart.
For now on, I'm bullish on USD, and will try to buy the dips until we get to 105.5 first, then we'll see how the market reacts, and if more buying pressure is steaming then we'll help to push prices all the way to 108
Cheers everyone and safe trading!!!
Comment
Grinding up!!!Comment
Going for the pullback now..Comment
Definitely follwoing the path
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.