Time for DXY to retrace, consolidate, find out where resistance is?
It’s about time for a little bit of retracement, consolidation for the DXY. After all markets don’t travel in a straight line – they usually move in zigzags. Besides, there was previously a resistance here so this level might over some support. Price action at the moment with the kink there appears to agree.
In my previous post ‘DXY falling, not unprecedented‘ I observed that DXY did something similar back in 2002. Since it is highly likely that history is repeating, I suspect that those price patterns we saw back in 2002 (until 2005) are highly likely going to make their appearance here.
Look out for sequence of new lows followed by retracement-consolidation. See how much current DXY price action resemble past pattern.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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