DXY Divergence Predicting a Top

03.11.19 10:09 PM Comment(s) By Alan Posner

DXY Divergence Predicting a Top

DXY has been range bound since mid-October trapped between 94.75 and 97.50.  On March 7th DXY hit a high of 97.71 only to fall again today to 96.94 diminishing any idea of a breakout.  On the weekly chart, we can see the TSI building divergence since the lower swing in mid-December and its possible a new lower high is being placed this week.


On the daily chart, the rally leading to last weeks high still has an upward trend, but a Bearish Two Crows candlestick pattern has set up a reversal.  I'll be watching to see if this channel holds.  Failure to stay above the double bottom at 95.15 means another run 94.75 and if the longer term divergence plays out perhaps a break of 94.75 and the beginning of a bear market in DXY.
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