DXY - Rising wedge + RSI divergence @ 97 level
- DXY looks to be forming within a rising wedge pattern
- This is an inherently bearish pattern
- Characterised by two ascending trend lines acting as support/resistance that converge together to form a point
- This pattern has come into resistance around the 97 level, we have seen this level act as strong support/resistance in the past
with multiple false breaks/rejections off this level as shown in yesterdays analysis here:
- As well as this the last higher high within this pattern, has been printed on the RSI chart as a lower low, this is
called RSI divergence and signals a loss in bullish momentum
- We would need to see a solid break below the lower ascending trend-line support to justify entering a short position
- If price were to break higher above the patterns upper trend-line resistance this would invalidate it
- All of these signs I believe point towards a potential continuation of the short term bearish momentum
THIS IS NOT TRADE ADVICE NOR A TRADE CALL
- This is an inherently bearish pattern
- Characterised by two ascending trend lines acting as support/resistance that converge together to form a point
- This pattern has come into resistance around the 97 level, we have seen this level act as strong support/resistance in the past
with multiple false breaks/rejections off this level as shown in yesterdays analysis here:
called RSI divergence and signals a loss in bullish momentum
- We would need to see a solid break below the lower ascending trend-line support to justify entering a short position
- If price were to break higher above the patterns upper trend-line resistance this would invalidate it
- All of these signs I believe point towards a potential continuation of the short term bearish momentum
THIS IS NOT TRADE ADVICE NOR A TRADE CALL
- This could prove to be a false break on higher time-frames eg daily however