The DXY is in the middle of a bullish wedge. Bears beware.
The DXY is in the middle of the range, and also testing the 61.8% retracement. Naturally, at this key Fibonacci level some traders may have the urge to “sell strength” however the longer term picture shows higher lows and consistent highs, which is a characteristic of a bullish wedge. Bullish wedges have a higher probability of breaking higher eventually so bears should be careful. Only a break of the 200dma and lower trend line near 96.00 would signal a bearish turn.
Blake Morrow
