DXY- False break and strong reversal ahead?

25 juil. 2024

Last week, the DXY broke below important horizontal support.
However, the next day, the index reversed its losses, followed by a bullish candle on Friday.
This created a strong reversal candle on our weekly chart, making us wonder if the initial break was false.

Now, the index is consolidating above this important horizontal support.
A break above the current lateral consolidation could lead to an upward acceleration.

Typically, after a false break, the asset moves in the opposite direction to test the next significant level.
For the DXY, this sets a target in the 1.0650 zone.

26 juil. 2024

Note

DXY bulls should watch 104.50-104.60 for a break
Also, the pattern is an inverse H&S