As seen in the chart, there is a "Ascending Broadening Wedge" pattern in the DXY. This is normally a bearish pattern with a trend reversal. Therefore, we have two options in front of us.
1) The first option is for the wedge to have one more leg to the upper resistance line. This can happen when the minor bearish trend line is broken to the upside.
2) The second option is a break of the wedge lower support line, which could start a new downtrend in the DXY.
We will find out next week which one will materialise.
1) The first option is for the wedge to have one more leg to the upper resistance line. This can happen when the minor bearish trend line is broken to the upside.
2) The second option is a break of the wedge lower support line, which could start a new downtrend in the DXY.
We will find out next week which one will materialise.