It is a busy week for data release with the main focus being the Fed interest rate decision, policy statement and FOMC press conference on Wednesday.
This could be perfect timing for medium-term support in the DXY (USD Index). We also have a short- term cypher pattern that could offer a confluence area close to 100.74.
It is always advisable not to try and catch the falling knife and we have seen four straight months on losses in the index but, as the great Warren Buffett once said, be fearful when others are greedy, and greedy when others are fearful. This can sometimes pay great dividends.
The monthly chart offers projected support at 100.74. A bounce form this level could form the correct BC leg in a large Bat formation (cypher).
The one-hour chart highlights a Bat formation completing just below the aforementioned support at 100.70-100.68.
Buying the dip could offer a great risk/reward setup.
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