Hello traders, Its been awhile since I published a free analysis here on forexanaltix, so I think it’s about time. The main reason why I wasn’t active a lot it’s because of a low volatility on the FX market. So rather than just looking at currencies I think it’s very important to track other markets […]
The DXY was our chart of the day last week and it is back in focus today.
The DXY recently came out of an ascending wedge that had developed for the last couple years. Currently, we have a bear flag setting up which points below the 97.00 level.
The EURUSD closed at the downtrend line of the descending wedge that has captured the low volatility of the pair for the last couple years. Today, we tested that resistance near the 1.1140 level.
The big rejection at the 108.50 level came following the very poor ISM Manufacturing data yesterday as the pair slid into key support today at the 107.00 level.
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.
The DXY has rallied to the underside of the trend line but also back above the 200dma which does muddy the picture.