DXY: Dollar Index Update - Not done yetDollar Index DXY
The dollar remains under medium term pressure and evntually
it should fall away in stages through the blue lines of near
term support potential to 88.31, and likely touching the
longer term trend line at the extremity of the fall before
bouncing away strongly again.
In the very near term DXY is making a little continuation
pattern below the low of the last decline at 90.97-91.01 and
flipping in a 1% range bounded by 91 on the upside and by
90.17 on the downside. As it does so, gold and Eur dance to
its tune.
Even if it can manage to move up above 91.01 it is likely only
to rally towards the upper parallel at best, touch it, and
recoil back lower once more. To escape the year-long down-
trend DXY has to break that upper parallel and hold on the
retest. Only then will the Dollar's trend turn back to positive
and we switch from selling rallies to buying dips once more.
