DXY daily guidance is cautiously bearish. Recommended ratio: 30% DXY, 70% Cash.
*DXY, US 10 Year Treasury Bonds and VIX are down while Equities, Cryptos, Commodities, Futures, GBPUSD, EURUSD and 30 Year Treasury Bonds are all up. With expectations of a federal funds rate above 4% in 2023 it's starting to get to that time where investors ask themselves when the continued rates hikes and impending Fed-forced recession will be priced in. Macroeconomic factors aside, geopolitical uncertainties mainly involving Russia and China pose adverse risks in the near-term to medium-term. Key Upcoming Dates: FOMC Member Loretta Mester speaks twice on 10/06; September US Employment Situation at 830am EST 10/07; FOMC Members Kashkari, Waller and Williams speak on 10/07; FOMC Minutes at 2pm EST 10/12; September US CPI at 830am EST 10/13; September US Retails Sales at 830am EST 10/14; UofM October Consumer Sentiment Index at 10am EST 10/15.*
Price is currently trending down at ~$110.40 as it approaches a test of $110 minor support. Parabolic SAR flips bullish at $114.70, this margin is mildly bullish. RSI is currently testing 49.10 minor support and is on the verge of testing the uptrend line from July 2020 at 47.47 as support if it continues down. Stochastic remains bearish and is currently beginning to form a trough as it tests 9.02 support; if it doesn't bounce here it will likely tests max bottom. MACD crossed over bearish today and is currently trending down at 0.90, the next support is at 0.65. ADX is currently trending down at 32 as Price is seeing selling pressure, this is mildly bearish at the moment.
If Price is able to bounce at $110.02 minor support then it will likely aim to retest the upper trendline of the ascending channel from October 2008 at $114.70 resistance. However, if Price breaks down below $110.02 minor support, it will likely retest the 50 MA at ~$108.80 as support. Mental Stop Loss: (one close above) $111.55.
*DXY, US 10 Year Treasury Bonds and VIX are down while Equities, Cryptos, Commodities, Futures, GBPUSD, EURUSD and 30 Year Treasury Bonds are all up. With expectations of a federal funds rate above 4% in 2023 it's starting to get to that time where investors ask themselves when the continued rates hikes and impending Fed-forced recession will be priced in. Macroeconomic factors aside, geopolitical uncertainties mainly involving Russia and China pose adverse risks in the near-term to medium-term. Key Upcoming Dates: FOMC Member Loretta Mester speaks twice on 10/06; September US Employment Situation at 830am EST 10/07; FOMC Members Kashkari, Waller and Williams speak on 10/07; FOMC Minutes at 2pm EST 10/12; September US CPI at 830am EST 10/13; September US Retails Sales at 830am EST 10/14; UofM October Consumer Sentiment Index at 10am EST 10/15.*
Price is currently trending down at ~$110.40 as it approaches a test of $110 minor support. Parabolic SAR flips bullish at $114.70, this margin is mildly bullish. RSI is currently testing 49.10 minor support and is on the verge of testing the uptrend line from July 2020 at 47.47 as support if it continues down. Stochastic remains bearish and is currently beginning to form a trough as it tests 9.02 support; if it doesn't bounce here it will likely tests max bottom. MACD crossed over bearish today and is currently trending down at 0.90, the next support is at 0.65. ADX is currently trending down at 32 as Price is seeing selling pressure, this is mildly bearish at the moment.
If Price is able to bounce at $110.02 minor support then it will likely aim to retest the upper trendline of the ascending channel from October 2008 at $114.70 resistance. However, if Price breaks down below $110.02 minor support, it will likely retest the 50 MA at ~$108.80 as support. Mental Stop Loss: (one close above) $111.55.