The DXY failed at the ascending wedge resistance once again.
An ascending wedge is a bearish setup by definition. However, the instrument is not actually bearish until we break the lower trend line of the wedge. In this case, near 97.50. Considering the DXY is at 99.13 currently, we are far from being bearish. Near term, the DXY may continue to consolidate and move back towards 98.00 as the daily RSI divergence has been a big indicator signalling to us not to chase price higher but buy dips instead. While the 200DMA is intact, buying dips (near there) seems like the best play with the broad dollar index.
Blake Morrow
