Sweet Goodbye for DXY
Monthly is looking weak for DXY.
Bear signals:
1 - Lower High has been made shown by top dotted line Nov-March 2016-17
2 - lower high has created new trend which was respected at Feb-June 2020
3 - Fibonacci 0.618 bounce Jan-April 2018 was textbook for growth but couldn't break the new high, since then we have been falling through the Fibonacci lines and is likely to keep breaking them as we couldn't extend past previous high at 103
4 - Green trend line starting May 2011 was broken at Jul 2020 and tested at Nov 2020 and couldn't break back above which indicated the current leg down
5 - Head and shoulders pattern forming on monthly indicated by light blue line, neck break will be 88 and at which point target will be 79 at the original swing low zone at April 2014
Last line of support for DXY is the 0.618 Fibonacci line at 88.610 which is a major support line. But with the current world status, and with the overview on FIAT currencies, the extreme printing rate of USA and the stimulus checks it is amounting to a weaker DXY over the next 3-4 years.
Bear signals:
1 - Lower High has been made shown by top dotted line Nov-March 2016-17
2 - lower high has created new trend which was respected at Feb-June 2020
3 - Fibonacci 0.618 bounce Jan-April 2018 was textbook for growth but couldn't break the new high, since then we have been falling through the Fibonacci lines and is likely to keep breaking them as we couldn't extend past previous high at 103
4 - Green trend line starting May 2011 was broken at Jul 2020 and tested at Nov 2020 and couldn't break back above which indicated the current leg down
5 - Head and shoulders pattern forming on monthly indicated by light blue line, neck break will be 88 and at which point target will be 79 at the original swing low zone at April 2014
Last line of support for DXY is the 0.618 Fibonacci line at 88.610 which is a major support line. But with the current world status, and with the overview on FIAT currencies, the extreme printing rate of USA and the stimulus checks it is amounting to a weaker DXY over the next 3-4 years.
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