Will DXY break Descending Channel at Support?!
Here I have the DXY on the 4Hr Chart!
For the past 2 weeks, Price on DXY has been steadily falling!
With our Highs and Lows marked, we can see that Price is outlining what looks to be a Descending Channel!
If price continues to follow down this channel, I suspect that the ( 105.53 - 105.025 ) Support Zone will be the area price will Most Likely find support to push higher!!
What I want to see is Price test the Falling Support of the Descending Channel for a Third Time with a successful bounce ultimately turning this Descending Channel into a Bull Flag Pattern!
-For added confirmation, once the next low is formed, I'd like to see:
1) The low be Equal too OR LOWER than the Second test of the Falling Support
2) A Bullish Divergence to appear on the RSI so underlying direction
Fundamentally to finish the week:
Advanced GDP, Unemployment Claims, Pending Home Sales (Thur)
Core PCE, UoM Consumer Sentiment (Fri)
-Another big fundamental factor to DXY strength will be the results from JPY Policy Rate decision and Core CPI released Thur!
For the past 2 weeks, Price on DXY has been steadily falling!
With our Highs and Lows marked, we can see that Price is outlining what looks to be a Descending Channel!
If price continues to follow down this channel, I suspect that the ( 105.53 - 105.025 ) Support Zone will be the area price will Most Likely find support to push higher!!
What I want to see is Price test the Falling Support of the Descending Channel for a Third Time with a successful bounce ultimately turning this Descending Channel into a Bull Flag Pattern!
-For added confirmation, once the next low is formed, I'd like to see:
1) The low be Equal too OR LOWER than the Second test of the Falling Support
2) A Bullish Divergence to appear on the RSI so underlying direction
Fundamentally to finish the week:
Advanced GDP, Unemployment Claims, Pending Home Sales (Thur)
Core PCE, UoM Consumer Sentiment (Fri)
-Another big fundamental factor to DXY strength will be the results from JPY Policy Rate decision and Core CPI released Thur!
Comment:
Fridays PCE results came in HOTTER than expected giving DXY quite the boost!!
-On the chart you can see price has worked right back up to the Falling Resistance of the Descending Channel with ease! Ending the week quite Bullish!
Next week fundamentally is a big one for DXY being the beginning of the month:
ADP Non-Farm, Manufacturing PMI, JOLTS, Funds Rate (Wed)
Unemployment Claims (Thur)
Average Hourly Earnings, Non-Farm, Unemployment Rate, Services PMI (Fri)
-On the chart you can see price has worked right back up to the Falling Resistance of the Descending Channel with ease! Ending the week quite Bullish!
Next week fundamentally is a big one for DXY being the beginning of the month:
ADP Non-Farm, Manufacturing PMI, JOLTS, Funds Rate (Wed)
Unemployment Claims (Thur)
Average Hourly Earnings, Non-Farm, Unemployment Rate, Services PMI (Fri)
-RSI showing DIVERGENCE like we planned!!