DXY Technical Analysis: The uptrend trend is over ?!
|US dollar index has started an uptrend since Feb 2018 and raised roughly 10% form 88.2, but there are some signs which are warning us the bullish trend is over, the fifth wave looks as if it’s ended and DXY has reached the upper bound of the parallel channel. On Wednesday, FED is expected to hike rates by 25bp, which is already priced out (current probability 72%) and it looks as if we are going to have a dovish meeting, global growth concerns and US President Donald Trump criticisms in recent months might put pressure on the FED and postpone their hiking plan in the next year.
So it’s expected to reach the lower bound of the parallel channel (target:95.00 – stoploss:98.1)
In the weakly time frame, DXY has faced with an important resistance level which has been made by the upper bound of the Andrew’s Pitchfork and I expect this resistance level prevent the price from moving higher. Also, a bearish oscillator divergence has occurred (Awesome oscillator).
The median line of the Pitchfork is the target (target:95.00 – stoploss:98.1)
Important resistance zone: 97.7 – 97.8
SL: 98.1
Important support level: 95.00 – 94.9
TP: 95.00
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