The market is still trying to avoid risk?
Introduction :
- As you know, the
DXY is the index representing the strength of the dollar against a lot of other currencies.
- Often used as a representation of capital flows, from RISK ON to RISK OFF, and vice versa.
- With the economic conjectures of the moment, the rise in rates, it is normal to see the DXY grow. On the other hand, it has been retracing for some time, which has allowed the markets to breathe a little.
- As you know, the
DXY is the index representing the strength of the dollar against a lot of other currencies. - Often used as a representation of capital flows, from RISK ON to RISK OFF, and vice versa.
- With the economic conjectures of the moment, the rise in rates, it is normal to see the DXY grow. On the other hand, it has been retracing for some time, which has allowed the markets to breathe a little.
- Point of view:
- The DXY is moving in the range (colored channel), but it rose quickly and needed to breathe, in this zone of action, the direction taken will have an effect on the markets for a few months.
- The chart stumbles on the 0.786 Fibonacci retracement of the last movement, so we could have had time to breathe to look for a new peak (materialized by the drawing in red).
- Otherwise, see the DXY react slightly on this level and fall to find the bottom of the channel. (Materialized by the green drawing)
- The RSI has fallen significantly, after having printed a Divergence Bear on us, and landed around 37.5- Conclusion :
- It is important to have both plans in mind, so as not to be taken aback on the market, but only our reactivity thanks to alerts can protect us from risk.
- Indeed, only economic announcements, geopolitics, or choices of large institutions can influence this index, so I think that anticipating its movement is not really possible.
- But on the contrary, delimiting areas or scenarios as here, with alerts, allows you not to suffer the vagaries of the market and to know how to intervene.
- I think that the direction of the DXY is very much to watch on its levels and these more than uncertain times.- Voilà une vision plus globale :
(It's a Fibonacci retracement, on the last move)
Thanks ! Don't hesitate to Follow, putting on your big rocket is always nice, and comment to tell me what you think!
- Conclusion :
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