DXY before the last NFP of 2024
The final wave of a 5-wave impulse is on the cards for the DXY which will allow the index to move towards the 61.8% Fibo retracement at 109. The DXY has been range bound between 100 and 107 for more than a year and we may finally see a break out of this range.
The DXY is currently testing the blue downward trend line that now serves as a neckline and a failed break below 105.38 will be an early signal of another move higher in the DXY. A break below 105 will however invalidate the idea. Technically the 50-day MA cross above the 200-day MA is dollar positive however there is a strong degree of bearish divergence on the RSI indicator which makes the move not as clear cut as I would have liked.
All eyes on Friday’s nonfarm payrolls print!
The DXY is currently testing the blue downward trend line that now serves as a neckline and a failed break below 105.38 will be an early signal of another move higher in the DXY. A break below 105 will however invalidate the idea. Technically the 50-day MA cross above the 200-day MA is dollar positive however there is a strong degree of bearish divergence on the RSI indicator which makes the move not as clear cut as I would have liked.
All eyes on Friday’s nonfarm payrolls print!
Note
The blue neckline and the 38.2% Fibo retracement level at 105.39 is held support following Friday's stronger than expected NFP's. All eyes on US CPI this Wednesday and I expect an inline or stronger than expected print will allow the dollar to make the 5th wave higher towards 108.98.
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