DXY experienced such a roller coaster day yesterday, starting from a Draghi's hawkish speech which push Euro even higher to Trump's statement saying he is expecting a strong dollar, which helps DXY to gain temporary bullish momentum.
If I see from the chart here, Trump's statement has helped pushing DXY to break over 78.6% fibo extension line (89.17 level), hitting the ceiling at 61.8% retracement (89.56 level) and is now retracing back to 89.17 level. At this point, it is really hard to predict if this is really the end of bear's run for US dollar. From daily chart, I can see bottoming tail, which indicates a strong rejection to the downside. Long term wise EMA(200), I'm still bearish on US Dollar. It is now interesting to see how DXY reacts to 89.17.
To add on, RSI(14) forms a hidden divergence which indicates a downtrend continuation now. It is interesting to see:
1) If there is any reversal price action around 89.17, short term wise will be bullish for DXY at least until it hits 89.56
2) Otherwise, the bear will still continue to push DXY even lower.
If I see from the chart here, Trump's statement has helped pushing DXY to break over 78.6% fibo extension line (89.17 level), hitting the ceiling at 61.8% retracement (89.56 level) and is now retracing back to 89.17 level. At this point, it is really hard to predict if this is really the end of bear's run for US dollar. From daily chart, I can see bottoming tail, which indicates a strong rejection to the downside. Long term wise EMA(200), I'm still bearish on US Dollar. It is now interesting to see how DXY reacts to 89.17.
To add on, RSI(14) forms a hidden divergence which indicates a downtrend continuation now. It is interesting to see:
1) If there is any reversal price action around 89.17, short term wise will be bullish for DXY at least until it hits 89.56
2) Otherwise, the bear will still continue to push DXY even lower.