The DXY is testing bear flag support.

The DXY was our chart of the day last week and it is back in focus today.

The DXY is testing two major technical levels. The 200DMA and the flag support. Since today’s move was the result of a Fed meeting, we may assume that we get some “continuation” in Asian and European trading. If this is the case, a bear flag may eventually point to the 96.00 level in the coming weeks. RSI is pointed lower and the major focus would turn to the channel support at 96.75.

DXY Bear Flag

Blake Morrow