DXY finally got out of the cloud which acts as a resistance. The green trend line is still valid. if 98.9x doesn't support, the next one would be the range between 97.5x and 98.1x.....good luck! s3.amazonaws.com/tradingview/snapshots/4/4fauoyPw.png
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The daily candle closed below the cloud. 98.9x support still legit. :)
DXY closed above the green down trend line. However, it got rejected by the conversion line again. Likely, dxy could keep testing the last week high. Hope it forms a "W" before moving up in the cloud. The green trend line was a resistance line. Now it could become a support line. Wait to see a reversal confirmation. 98.9x would still be possible to reach.
DXY got rejected and left a red candle for the day. Expect it would test 99.8x. If this support holds nicely during Asia and Europe sessions, DXY would test last week high again once US market opens. Potentially, DXY would form a H&S on 4H chart which has been attached below.
We got an inverted hammer at the end of the day. DXY was rejected by the 101.7x resistance. the intraday high was at 101.76....expect dxy would test 100.6x
The last week candle pattern looks bearish. I will pay close attention to the market this week. FOMC int rate decision, US debt ceiling, and Dutch general election are on the way this week.
Expect DXY another leg down due to the delayed vote of health care bill. 99.0x ~ 99.2x would be a key support area. If it fails to hold that level, would go down to 98.0x ~ 98.3x area. For the upside, 100 would attract most of traders' attention.
DXY stopped at 98.858 which was the near turn lower low. For the next couple of weeks, the overhead cloud would likely be tested. Hope to see DXY in between 101 and 102.
DXY should test the conversion line next week. if it breaks 100.2x, dxy would have a lot of room to go higher. otherwise, it would keep going down to 98.2x. Expect the election in France and the tax plan in US would matter.
Fed made a decision on not raising the interest rates in July FOMC meeting. DXY has been down further since then. Now, it closes slightly above the conversion line. Let's see if it's an early reversal sign.