DXY looks set to confirm the bearish breakout from last week with a 3rd rejection from the declining trend line, we have seen the 3rd lower high and could be set to preform yet another lower low.
On a longer macro view we also see the the DXY is also in a falling overall trend with lower highs since 2017
Its now surprise that BTC continues its negative correlation with the DXY and I feel now coincidence that BTC bounced from its support at 45.5k when the DXY got rejected from resistance at 96.45.
Could we have been seeing a huge fake out in the DXY with this rejection from the middle Bollinger on a macro view confirming its still in a bear market as we speak the stimulus keeps on printing rom the fed balance sheet and the raise hikes seem a long way away. Perhaps we will see another surge in breakaway movements for more risk on assets such as stocks and shares, crypto until the realization of hikes and end to stimulus becomes a reality. We have to also consider that the market could already be pricing in the hikes and the reality is now the majority of the market feels its to late action from the FED and the inflation hell hold coming is unstoppable.
I feel there is good probability to the DXY seeking into another lower low and confirming the rejection setting a short with stop loss at middle Bollinger could be a lucrative short term position. Views to the long term its to early to say we need more confirmation from the DXY in either direction its in a very similar place to BTC at the cross roads up or down is a possibility.
What's your thoughts ?
On a longer macro view we also see the the DXY is also in a falling overall trend with lower highs since 2017
Its now surprise that BTC continues its negative correlation with the DXY and I feel now coincidence that BTC bounced from its support at 45.5k when the DXY got rejected from resistance at 96.45.
Could we have been seeing a huge fake out in the DXY with this rejection from the middle Bollinger on a macro view confirming its still in a bear market as we speak the stimulus keeps on printing rom the fed balance sheet and the raise hikes seem a long way away. Perhaps we will see another surge in breakaway movements for more risk on assets such as stocks and shares, crypto until the realization of hikes and end to stimulus becomes a reality. We have to also consider that the market could already be pricing in the hikes and the reality is now the majority of the market feels its to late action from the FED and the inflation hell hold coming is unstoppable.
I feel there is good probability to the DXY seeking into another lower low and confirming the rejection setting a short with stop loss at middle Bollinger could be a lucrative short term position. Views to the long term its to early to say we need more confirmation from the DXY in either direction its in a very similar place to BTC at the cross roads up or down is a possibility.
What's your thoughts ?
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