DXY Analysis Breakdown
Good evening Everyone,
The US Dollar looks to be primed to continue its recent downtrend. With the presidential elections wrapping up in the US, the markets appear to be steadying out. With COVID relief packages likely to pass in the new year and increased government spending expected, the dollar will likely struggle.
On the 1D charts, the dollar is starting to break below a recent consolidation zone. I personally feel this consolidation was fueled by uncertainty at the start of the election week (I think the DXY would have dropped sharply had there been little to no uncertainty surrounding the election results). The next significant area of support looks to be in the 88.00 range.
The CHF and JPY are following suit, with the USDJPY recently breaking below a moderately strong support. The USDJPY appears to be on the fast track to the 100.00 region now that it has closed below the descending triangle it has been stuck in (see below chart). The USDCHF looks to be having a bit more trouble breaking its support but is looking to do so in the upcoming sessions.
I expect the above pairs to be fairly active in the upcoming sessions and will be following along closely.
Please feel free to follow along and provide any input!
*This is not intended to be investment advice*
The US Dollar looks to be primed to continue its recent downtrend. With the presidential elections wrapping up in the US, the markets appear to be steadying out. With COVID relief packages likely to pass in the new year and increased government spending expected, the dollar will likely struggle.
On the 1D charts, the dollar is starting to break below a recent consolidation zone. I personally feel this consolidation was fueled by uncertainty at the start of the election week (I think the DXY would have dropped sharply had there been little to no uncertainty surrounding the election results). The next significant area of support looks to be in the 88.00 range.
The CHF and JPY are following suit, with the USDJPY recently breaking below a moderately strong support. The USDJPY appears to be on the fast track to the 100.00 region now that it has closed below the descending triangle it has been stuck in (see below chart). The USDCHF looks to be having a bit more trouble breaking its support but is looking to do so in the upcoming sessions.
I expect the above pairs to be fairly active in the upcoming sessions and will be following along closely.
Please feel free to follow along and provide any input!
*This is not intended to be investment advice*
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