Bull are winning for now
Monthly Chart Analysis:
The DXY has been experiencing strong bullish momentum.
The monthly chart touched the bottom of an upward channel and dipped into the FVG created in April 2022. In August, the DXY made a new monthly high and stopped at the top of the consolidation zone that began in December 2022.
September continued the rally out of the consolidation zone, closing significantly higher.
The current month experienced a small retracement but still holds bullish momentum.
Anticipate high volatility as the month ends, potentially creating a new FVG.
Daily Chart Analysis:
The daily chart shows a bull flag pattern, with a recent swing low indicating a liquidity sweep that cleared out bulls and trapped bears.
RSI is above the midline at 57 1/4, and MACD is also above the midline and sloping up.
Note a divergence in RSI due to Friday's movement.
The market flow appears bullish, with an attempt to close above the previous month's high.
4-Hour Chart Analysis:
Tuesday's price action is interpreted as a "spring" followed by a rally.
Price is consolidating above recent swing highs.
Sell-side liquidity was swept on Friday morning, and price is holding above the associated zone.
RSI on the 4-hour chart is at 55 9/16, sloping up, and MACD is above the midline.
Weekly Chart Analysis:
The weekly chart reflects a similar bullish market flow with a bull flag formation.
RSI is very bullish, currently reading 69 7/8, and MACD is above the midline, sloping up.
The weekly chart doesn't indicate any significant displacements and suggests that further retracement may not be necessary.
Based on my analysis, the Dollar Index appears to be in a strong bullish trend. It has recently broken out of a consolidation zone, and the various timeframes I've analyzed show multiple bullish signals. However, I've also noted a potential divergence in RSI on the daily chart, which suggests some caution. It will be important to monitor the market closely for any signs of reversal or extended bullish momentum.
The DXY has been experiencing strong bullish momentum.
The monthly chart touched the bottom of an upward channel and dipped into the FVG created in April 2022. In August, the DXY made a new monthly high and stopped at the top of the consolidation zone that began in December 2022.
September continued the rally out of the consolidation zone, closing significantly higher.
The current month experienced a small retracement but still holds bullish momentum.
Anticipate high volatility as the month ends, potentially creating a new FVG.
Daily Chart Analysis:
The daily chart shows a bull flag pattern, with a recent swing low indicating a liquidity sweep that cleared out bulls and trapped bears.
RSI is above the midline at 57 1/4, and MACD is also above the midline and sloping up.
Note a divergence in RSI due to Friday's movement.
The market flow appears bullish, with an attempt to close above the previous month's high.
4-Hour Chart Analysis:
Tuesday's price action is interpreted as a "spring" followed by a rally.
Price is consolidating above recent swing highs.
Sell-side liquidity was swept on Friday morning, and price is holding above the associated zone.
RSI on the 4-hour chart is at 55 9/16, sloping up, and MACD is above the midline.
Weekly Chart Analysis:
The weekly chart reflects a similar bullish market flow with a bull flag formation.
RSI is very bullish, currently reading 69 7/8, and MACD is above the midline, sloping up.
The weekly chart doesn't indicate any significant displacements and suggests that further retracement may not be necessary.
Based on my analysis, the Dollar Index appears to be in a strong bullish trend. It has recently broken out of a consolidation zone, and the various timeframes I've analyzed show multiple bullish signals. However, I've also noted a potential divergence in RSI on the daily chart, which suggests some caution. It will be important to monitor the market closely for any signs of reversal or extended bullish momentum.
discord.gg/a7sfTVkgxc
I’m part of a free Discord group where we help each other navigate the market and overcome trading challenges. It’s a friendly, supportive community, with members from around the globe.
I’m part of a free Discord group where we help each other navigate the market and overcome trading challenges. It’s a friendly, supportive community, with members from around the globe.
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.
discord.gg/a7sfTVkgxc
I’m part of a free Discord group where we help each other navigate the market and overcome trading challenges. It’s a friendly, supportive community, with members from around the globe.
I’m part of a free Discord group where we help each other navigate the market and overcome trading challenges. It’s a friendly, supportive community, with members from around the globe.
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.