The DXY has displayed a contraction pattern, signaling uncertainty. Today's anticipated Consumer Confidence and Durable Goods Orders reports could inject volatility.
Technical analysis: The DXY is navigating within a descending channel, hinting at a bearish sentiment. After it broke out of a bullish flag pattern, it pushed up to the major resistance of 105.00, which it rejected and lost momentum, falling down and creating the bearish channel. Support at 103.60 is pivotal; holding above may lead to retesting 104.50, but as it keeps forming these lower lows and highs it doesnt look too promising. A break below could see a reversion to the channel, targeting the 103.00 level again.
Our position: We are cautiously optimistic, but waiting for more clear signs and confirmation of idrection to enter further trades. As we are awaiting the market's reaction to the upcoming economic data, we are looking for positions on other pairs. A sustained position above the channel supports a bullish outlook, while a drop below 103.60 could alter the bias.
Technical analysis: The DXY is navigating within a descending channel, hinting at a bearish sentiment. After it broke out of a bullish flag pattern, it pushed up to the major resistance of 105.00, which it rejected and lost momentum, falling down and creating the bearish channel. Support at 103.60 is pivotal; holding above may lead to retesting 104.50, but as it keeps forming these lower lows and highs it doesnt look too promising. A break below could see a reversion to the channel, targeting the 103.00 level again.
Our position: We are cautiously optimistic, but waiting for more clear signs and confirmation of idrection to enter further trades. As we are awaiting the market's reaction to the upcoming economic data, we are looking for positions on other pairs. A sustained position above the channel supports a bullish outlook, while a drop below 103.60 could alter the bias.