DXY Straight to the 1W MA200 (98.000) is possible

DXY is trading much lower than the 1W MA50 and is unphazed by the 1W technicals that are quickly approaching an oversold state (RSI = 35.543, MACD = -0.830, ADX = 32.507). With the pattern that has been confirmed as a Head and Shoulders since the September peak, it is possible to see a straight continuation of the downtrend to at least the 1W MA200.

Since mid November we see a straight Channel Down leading the price to the imporant 101.260 Support (May 30th low). A similar bearish Channel while the RSI was that low on 1W was formed during the 2017 downtrend that hit the 1W MA200 with ease.

As a consequence, a breach of the 101.260 Support will be all the confirmation we need to extend our selling and target the 1W MA200 on the long term.


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