DXY - 1D - RSI Bearish Divergence at Resistance?

Updated

Not a financial advisor.

Initially I was under the impression that the DXY was developing an Inverse Head And Shoulders Formation.
But the last day(s), makes me question that assumption.
I am currently looking at:

1) Rejection from the yellow trendline
2) RSI bearish divergence on the 4H and 1D

Awaiting to see how strong the yellow trendline resistance is or
if a break will develop into a bullish momentum.

On the 4H, the Bearish Divergence is clearer:

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Double bearish divergence:

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DXY needs to create hidden Bullish divergence to create the possibility for higher high:

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Very possible Cup and Handle formation within the flag.
If the C&H plays out, the higher timeframe Inverse Head and Shoulders might break the neckline:

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Awaiting to see the reaction at the support:

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A drop below 92 would represent a lower low.

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CPI Data

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After CPI Data:

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After the CPI data release and analysing the 1D there is the possibility for a RSI bearish divergence.

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In case DXY moves above the 93.3 there is the possibility to reach the Inverse Head and Shoulders target.

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Daily RSI Bearish Divergence seems to be confirmed but looking at the 93 level as the possibility of a higher high on the RSI (meaning that this divergence is no longer valid)

Trade closed: stop reached

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pedrogarrinhas

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