On Tuesday morning, I tweeted my thoughts on the chart and the technical state of the DXY. The daily chart and my comments are below.
“Last Friday, the DXY impulsively broke below the midline (dotted gold line) of the cloud and the short-term bearish Schiff modified pitchfork (P1 to P3 in gold). Price breached the TDST support at the 102 level today after closing below the lower parallel line (solid purple line) of the Modified Pitchfork (purple P1 to P3) MACD failed to turn positive After flipping over the signal line and the Fisher transform is also below the signal line, the weight of negative evidence and several support level violations have greatly increased the chances of a major support at 101.80 being tested. Only if gold’s support at the lower parallel of the Schiff modified pitchfork sustains continued selling pressure should I reconsider my technical theory.”
As you can see from the updated chart posted below, after a short pause, the decline has fallen again and the index has broken through the two support levels I mentioned in my comment on Tuesday. During Wednesday’s trading session, the index quickly broke the potential support of the lower parallel line (solid gold line) on the Schiff-modified pitchfork (P1 to P3 for gold), and later in the session DXY was holding the price at 100.80. The level of potential price support has been breached. Rebound in early February and April. As the saying goes, “If you jump over a trapdoor too many times, it will crack open and you’ll be out of the way.” According to the law of polarity, it should act as a resistance (100.80) in the oversold rally that will inevitably unfold, but there is little evidence of a sell. Off has reached its lowest point. Neither the MACD nor the Fisher Transform suggest that the current bar’s decline has ended its course.
We are now watching the 4-hour chart closely, looking for hints that an oversold rally may be occurring, but as you can see in the chart below (the one we used for the daily chart above). using the same secondary technical indicator as ) and no hints at all. In turn, despite the oversold situation.
The long-term weekly chart below is no consolation for those holding long positions in the ‘greenback’. After beating Weekly Cloud support earlier this year, DXY has failed to regain its place within the crowd, with Schiff improved Pitchfork (P1 to P3) from early June and Kijun Plot (green line) from mid-last month. . The MACD is rolling over the signal line again as it tracks the negative area and the Fisher transform is back below the signal line. The only technical feature that might help slow the decline is the potential support at the upper parallel line (solid purple line) of the Schiff modified pitchfork.
In conclusion, this is still a living technical grenade, on which it is stupid to pierce yourself. Not yet, at least until it is lifted.
Readers unfamiliar with the technical terms and tools mentioned in DXY’s short-term technical landscape comments can refer to a brief tutorial titled “Technical Analysis Tools” or “Three-Part Pitchfork Papers”. can. Market Compass Website…
https://themarketscompass.com
Chart courtesy of Optuma.
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