DXY 200 points run has completed 92.75 to 94.75DXY
After the 200 point run from 92.75 to 94.75 its gave back some of the earlier gains. And reached 94.16 today. And reached the downside trend line which is drawn from September 09 low 92.70
We have observed that DXY tend to move from 92.75 93.75 94.75 levels in upcoming days will update about the market reaction from this levels
After reaching the 50% Fibonacci retracement level its started to slowing down. I think today bearish run is a short term correction. If the trend line got broken then the downside target would be 94.00 comes around 61.8% Fibonacci level and key psychological level. 94.00 is acted as resistance for DXY Since July 28 and the level is broken on 22 September and stayed above this level
If the DXY is remain well above 94.00 means the bull is still have a major control here. Negative risk sentiment causes USD,JPY to rise thus DXY got some major boost and in recent days the equity markets around the world seen some kind of September selloff. The investors remain worrying about second wave of COVID-19 infections and the Possibilities of No deal BREXIT and the upcoming United states of America presidential election
Today weak momentum in USD is caused by the relative strength of GBP and CAD though its contributed meager amount in basket of currencies against greenback. Today XTIUSD also got some major bid as tits traded well above the 40.00 level. And the equities are starting the week with solid gains thus its makes the USD less attractive
Currently DXY is trading below the 50 Exponential moving average and above 100,200 EMA
On Elliot wave theory The minor waves are completed from 92.75 to 94.75 and currently its forming a minor ABC correction waves. After the completion of c wave we can expect another 1-5 wave formation
DXY has reached the lower region of the Bollinger bands and we can expect minor rebound from this level. If the price got some major rejection around 94.60 then it will form a clear Head and shoulder pattern and selloff will happen
RSI has reached oversold area and showing some signs of rebound towards 50
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