Will DXY break Descending Channel at Support?!
Updated
Here I have the DXY on the 4Hr Chart!
For the past 2 weeks, Price on DXY has been steadily falling!
With our Highs and Lows marked, we can see that Price is outlining what looks to be a Descending Channel!
If price continues to follow down this channel, I suspect that the ( 105.53 - 105.025 ) Support Zone will be the area price will Most Likely find support to push higher!!
What I want to see is Price test the Falling Support of the Descending Channel for a Third Time with a successful bounce ultimately turning this Descending Channel into a Bull Flag Pattern!
-For added confirmation, once the next low is formed, I'd like to see:
1) The low be Equal too OR LOWER than the Second test of the Falling Support
2) A Bullish Divergence to appear on the RSI so underlying direction
Fundamentally to finish the week:
Advanced GDP, Unemployment Claims, Pending Home Sales (Thur)
Core PCE, UoM Consumer Sentiment (Fri)
-Another big fundamental factor to DXY strength will be the results from JPY Policy Rate decision and Core CPI released Thur!
For the past 2 weeks, Price on DXY has been steadily falling!
With our Highs and Lows marked, we can see that Price is outlining what looks to be a Descending Channel!
If price continues to follow down this channel, I suspect that the ( 105.53 - 105.025 ) Support Zone will be the area price will Most Likely find support to push higher!!
What I want to see is Price test the Falling Support of the Descending Channel for a Third Time with a successful bounce ultimately turning this Descending Channel into a Bull Flag Pattern!
-For added confirmation, once the next low is formed, I'd like to see:
1) The low be Equal too OR LOWER than the Second test of the Falling Support
2) A Bullish Divergence to appear on the RSI so underlying direction
Fundamentally to finish the week:
Advanced GDP, Unemployment Claims, Pending Home Sales (Thur)
Core PCE, UoM Consumer Sentiment (Fri)
-Another big fundamental factor to DXY strength will be the results from JPY Policy Rate decision and Core CPI released Thur!
Note
Mixed results from this mornings GDP and Unemployment see the DXY drop to SUPPORT and gain Bullish Momentum!! -RSI showing DIVERGENCE like we planned!!
Note
Fridays PCE results came in HOTTER than expected giving DXY quite the boost!!-On the chart you can see price has worked right back up to the Falling Resistance of the Descending Channel with ease! Ending the week quite Bullish!
Next week fundamentally is a big one for DXY being the beginning of the month:
ADP Non-Farm, Manufacturing PMI, JOLTS, Funds Rate (Wed)
Unemployment Claims (Thur)
Average Hourly Earnings, Non-Farm, Unemployment Rate, Services PMI (Fri)
Novi_FIbonacci
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