US Dollar potential falling broadening wedge pattern
Updated
DXY is forming what looks like a broadening bullish falling wedge pattern
This could bring DXY up to between 98.5 and 99 levels.
A successful breakout above the wedge could fuel a move to 104 and above
(Could also be confirming a cup and handle pattern starting March 2015)
Expect consolidation around 97.1 and 98.5 levels, with potential pullbacks to test support/resistance lines
All bets are off if DXY breaks below 93.7
Confirmed with multiple indicator bullish divergences, the dollar is also currently oversold. However if this is the start of a new bear market for the Dollar (which I highly doubt), USD can remain oversold for much longer.
In terms of Fundamentals; if the Fed does wake up and raise rates (At least once, most likely twice) this year, it will be very bullish for the dollar.
If this plays out, commodities will come under selling pressure, most importantly GOLD, check out my normalized GOLD chart explaining the recent move in GOLD.
This could bring DXY up to between 98.5 and 99 levels.
A successful breakout above the wedge could fuel a move to 104 and above
(Could also be confirming a cup and handle pattern starting March 2015)
Expect consolidation around 97.1 and 98.5 levels, with potential pullbacks to test support/resistance lines
All bets are off if DXY breaks below 93.7
Confirmed with multiple indicator bullish divergences, the dollar is also currently oversold. However if this is the start of a new bear market for the Dollar (which I highly doubt), USD can remain oversold for much longer.
In terms of Fundamentals; if the Fed does wake up and raise rates (At least once, most likely twice) this year, it will be very bullish for the dollar.
If this plays out, commodities will come under selling pressure, most importantly GOLD, check out my normalized GOLD chart explaining the recent move in GOLD.
Note
The dollar is behaving just like expected, some key economy data could create noise, but this is looking good
Related publications
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.