The DXY tracking the USD Currency is currently taking a massive hit while stocks surge on CPI data.
Generally, the DXY tends to move inversely with the Stock Market overall and is a good place to find resistance and support levels that are hidden in the Stock Market. (As DXY Finds support, stocks hit resistance; vice versa)
Recently the US Dollar Index has taken a massive hit after a yearlong nonstop Rally. For the First time, DXY Is breaking down thru major moving averages carrying the move this year.
The Dollar is finally seeing a larger size pullback.
We are diving in to the technicals here and seeing what may be in store next for the DXY
Technicals :
We have 3 major things in the chart outlined here.
- A 2 Month Long Flag the Chart was printing, that just broke below out of.
- 2 Different Trendlines from earlier this year, drawing the runup up.
We just broke all 3 of these in one day. A Retest of the Lighter Yellow Trendline did occur today, as you can see we got a wick-up & a rejection from the level, sending the stock market higher on CPI data.
Looking for further retests are key here, and whether or not the market rejects or the dollar retakes these levels.
Overall This Breakdown looks very bearish, and looking for retests seems to be the play.
Momentum :
Daily : Bearish Momentum Extending, possibly overextended.
Weekly + Monthly : Bullish Momentum from 2021 finally fading, and showing signs of a flip to bearish Momentum (TTM_SQUEEZE)
Thesis : bearish & looking for retests and sideways action after a drastic move.
Similar applies to the TNX and other Treasury Yield-tracking ETFS
Generally, the DXY tends to move inversely with the Stock Market overall and is a good place to find resistance and support levels that are hidden in the Stock Market. (As DXY Finds support, stocks hit resistance; vice versa)
Recently the US Dollar Index has taken a massive hit after a yearlong nonstop Rally. For the First time, DXY Is breaking down thru major moving averages carrying the move this year.
The Dollar is finally seeing a larger size pullback.
We are diving in to the technicals here and seeing what may be in store next for the DXY
Technicals :
We have 3 major things in the chart outlined here.
- A 2 Month Long Flag the Chart was printing, that just broke below out of.
- 2 Different Trendlines from earlier this year, drawing the runup up.
We just broke all 3 of these in one day. A Retest of the Lighter Yellow Trendline did occur today, as you can see we got a wick-up & a rejection from the level, sending the stock market higher on CPI data.
Looking for further retests are key here, and whether or not the market rejects or the dollar retakes these levels.
Overall This Breakdown looks very bearish, and looking for retests seems to be the play.
Momentum :
Daily : Bearish Momentum Extending, possibly overextended.
Weekly + Monthly : Bullish Momentum from 2021 finally fading, and showing signs of a flip to bearish Momentum (TTM_SQUEEZE)
Thesis : bearish & looking for retests and sideways action after a drastic move.
Similar applies to the TNX and other Treasury Yield-tracking ETFS