DXY BEARISH REJECTION TO NEW LOWS?
The dollar has been in a downtrend since late March 2019 and I'm expecting a bearish rejection off the 50DMA. If this were to happen I expect us to reach new lows, which would be very good for stocks and crypto markets.
Inversely if the dollar is able to break the turquoise downtrend line then that will be a worrisome signal. One thing to take note on is there is a record amount of dollar shorts so at some point there will be a dollar short squeeze.
I still believe that we will at least hit the monthly 200MA though and remain bullish on the markets.
Remember this is only my formed analysis outlook. This is not an endorsement or recommendation to buy or sell.
Inversely if the dollar is able to break the turquoise downtrend line then that will be a worrisome signal. One thing to take note on is there is a record amount of dollar shorts so at some point there will be a dollar short squeeze.
I still believe that we will at least hit the monthly 200MA though and remain bullish on the markets.
Remember this is only my formed analysis outlook. This is not an endorsement or recommendation to buy or sell.
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Zoomed out view on the monthly shows us that the 86.80 level is a pivotal one for the DXY.
Zoomed out view on the monthly shows us that the 86.80 level is a pivotal one for the DXY.
You can see above on the monthly time frame where the Dollar failed to make a higher high and so that makes it likely to also make a lower low. The 200SMA around 86.80 should catch it as temporary support.