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DXY falling, not unprecedented

DXY has now fallen out 3-year range with new 52-week low.

In this chart, 13-week, 26-week, 52-week and 104-week exponential moving averages. These represent quarterly, half-yearly, yearly and 2-year trend.

Note that the 13-week in red and 26-week in blue are now acting as resistance. Since November last year, the last dead cross has also appeared.

DXY weekly chart late 2014 - present

DXY weekly chart late 2014 – present

I wrote a long explanation in this post ‘5 bearish signals that show DXY uptrend terminated‘ to share my observation why DXY will continue to fall.

The fact is there is only one simple explanation – that such a move is not unprecedented so history is likely to repeat in the same if slightly different way.

DXY weekly chart late-2000 to end-2013

DXY weekly chart late-2000 to end-2013

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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