Technical Analysis

DXY analysis ahead of the FOMC meeting minutes


Dear reader, let us have a look at the DXY (Dollar index) ahead of the important events since we will witness the FOMC meeting minutes today and NFP data to be released tomorrow.

Actually, the long-term overview looks constructive, as the bullishness remains in favor only over the long-term basis.

With that in mind, long-term traders could buy U.S. dollar; however, we see chances for achieving corrective actions over medium-term and short-term basis due to the following technical reasons:

·        Retreating for tough resistance over the weekly basis.

·        The negative divergence on RSI14.

·        The bearish harmonic formation on the RSI.

To recap, stability below 94.00 offers selling opportunities over short-term basis with targets at 91.00 where bulls may re-charge and go long once again. 

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