The DXY has been on a rip since it re-tested its LT support channel on Aug 11 but is starting to look a bit toppy in the ST at least.
Things to note:
- LT Resistance $111.50 - $112.34
- Possible test of LT resistance coinciding with the FED FOMC meeting & rate raise Sept 20-21
- Price holding 9SMA as support but it's going sideways (if turn down that's bearish)
- Major support @ 50SMA back-tested successfully Sept 13
- LT Support channel @ $106 - $107
- RSI getting up there
If I had to call it, I'd say the DXY comes down a bit tomorrow & allows risk-on assets to bounce to some degree.
IF that scenario takes place, I'm ultimately looking for the RSI to cool-off & to get a re-test of the 50SMA as support before further upside continuation, assuming the market decides that the rate raise is bearish, which I believe it will eventually even if we get a ST rally.
Things to note:
- LT Resistance $111.50 - $112.34
- Possible test of LT resistance coinciding with the FED FOMC meeting & rate raise Sept 20-21
- Price holding 9SMA as support but it's going sideways (if turn down that's bearish)
- Major support @ 50SMA back-tested successfully Sept 13
- LT Support channel @ $106 - $107
- RSI getting up there
If I had to call it, I'd say the DXY comes down a bit tomorrow & allows risk-on assets to bounce to some degree.
IF that scenario takes place, I'm ultimately looking for the RSI to cool-off & to get a re-test of the 50SMA as support before further upside continuation, assuming the market decides that the rate raise is bearish, which I believe it will eventually even if we get a ST rally.