One more about DXY
I think the dollar can bounce short-term certainly. But long term, look at these 3 major price increases (’84, ’01, ’16). Look what happens when the 13ma(blue) crosses below the 34ma(green). There has never been a major price recovery following that event. In fact, in ’84 and ’01 price retraced 100% of the previous upward move. So LT target here would be ~75 in my opinion. Bullish retracements during these bear trends never got above the 13ma. So worst case right now I think DXY can rally to ~92.70, before continuing lower.
(click to enlarge image)
Thanks for the long-term picture Nick
Thanks ,Nick, for posting this. It is rather negative looking for the $USD.