The hawk has spread its wing yesterday after the FED's meeting where they suggested kind-of-hawkish tone which triggered a small rally in the DXY yesterday; the market has already priced in most of the anticipation which explained a not-so-big rally. Many believe that, according to the probability of FED fund rate, the rate will probably be hiked in December; so in a long run, DXY has a pretty optimistic outlook and a safe long-term play. Now of course, it is always important to look at the chart as well. So, let's take a look at the daily chart.
As you can see, there's a divergence between the price and the Fisher transform which suggests a stronger momentum in the DXY; also, the Fisher transform has already crossed up which emphasize this view. However, in a short run, the price will have to fight this resistance at 92.55 before moving up to test the next level at 94.15, but 94.15 is something that I'm not quite sure yet that DXY will be able to go up there soon because there's still tension in the Korean peninsula and Emerging market that sucks out the capital. Nonetheless, yes, the price could be trading in the range of 92.55 - 94.15; but please take note, Fisher transform is coming to its resistance as well at 1.224 - currently at 0.7143 - there's still an upside as long as Fisher is up.
In a week time frame, Fisher is up, there's a conformance in both week and day time frame which this is a strong view for the DXY. Because of this, I think longing DXY is a better play that going against it.
As you can see, there's a divergence between the price and the Fisher transform which suggests a stronger momentum in the DXY; also, the Fisher transform has already crossed up which emphasize this view. However, in a short run, the price will have to fight this resistance at 92.55 before moving up to test the next level at 94.15, but 94.15 is something that I'm not quite sure yet that DXY will be able to go up there soon because there's still tension in the Korean peninsula and Emerging market that sucks out the capital. Nonetheless, yes, the price could be trading in the range of 92.55 - 94.15; but please take note, Fisher transform is coming to its resistance as well at 1.224 - currently at 0.7143 - there's still an upside as long as Fisher is up.
In a week time frame, Fisher is up, there's a conformance in both week and day time frame which this is a strong view for the DXY. Because of this, I think longing DXY is a better play that going against it.
Comment:
Not closing this yet. We are playing DXY for a long run now after FED's shrug off it inflation target and will raise the rate anyway.
Trade closed: target reached