Good day traders! Last year December, I wrote that the Dollar Index stood a good chance to eventually break the September 2019 high. Price has just pipped that high but is approaching a 0.786% Fib retracement level as well as a 50% dashed median line of a long-term pitchfork.
There is also the possibility that DXY is approaching the end of an expanding ending diagonal pattern (orange lines), which could have a bearish outcome once it ends.
It would be interesting to see whether DXY will find resistance within the 99.90 – 100.90 price zone and reverse lower. It would be wise to wait for a weekly reversal candlestick to potentially confirm the start of a reversal before targets can be set.
Price will often overshoot the top of an expanding ending diagonal, but I will be watching DXY closely over the next week or so and provide an update on this market once I think a reversal has started.
Bias: Bearish after weekly reversal candlestick within the resistance zone.
Potential Resistance Zone: 99.90 – 100.90
Until next time, have a great day!