Technical Analysis

What is the target of DXY?


Updating our bullish overview published on March 27, we can see how the U.S. dollar index has adopted favorable reactions to the positive scenario where it succeeded in breaching enormous resistances at 90.50 and 90.90.

In that report, we defined 92.60 to be the technical objective of the bullish wave. Actually, the areas of 92.60 become very close as the index is currently flirting with 92.40 regions.

Shall the bullish wave continue?

We do believe that the path is still open for further appreciation based on hitting the middle line of pitchfork channel as seen on the weekly chart below.


The second chart below shows the huge breakout occurred over weekly basis, which statistically targets SMA200 at 94.65.


The third chart shows the probability of forming the CD leg of potential Bat pattern with targets at 94.60; noting that, the RSI 14 could be relieved with some corrective actions, while the major uptrend of DXY over bigger intervals remains intact.