Although I was bearish on DXY a couple weeks back, I am now bullish . DXY has broken out of the the Bearish Structure. And as we all know, Descending Wedges are a bullish signal following a breakout. As clearly seen from this chart, not only has DXY broken out of the wedge but it has also retested it. From here it should continue upwards. It appears a new structure is already starting to form.
I am guessing, we may see a correction around this level as it recently hit a key level but expect a push up to the next order block following a little consolidation within this order block.
It is very important to follow and understand DXY movements as it will have a huge impact on USD pairs. As such, I am expecting USDCAD to extend further to upside (Analysis linked below). As well as GU & EU to melt down further.
Again to summarize, I am expecting a small correction and then a move to the the upside. I will do a review and follow-up next weekend after the coming week’s price action.
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