DXY- False break and strong reversal ahead?

25 de jul. de 2024

Last week, the DXY broke below important horizontal support.
However, the next day, the index reversed its losses, followed by a bullish candle on Friday.
This created a strong reversal candle on our weekly chart, making us wonder if the initial break was false.

Now, the index is consolidating above this important horizontal support.
A break above the current lateral consolidation could lead to an upward acceleration.

Typically, after a false break, the asset moves in the opposite direction to test the next significant level.
For the DXY, this sets a target in the 1.0650 zone.

26 de jul. de 2024

Nota

DXY bulls should watch 104.50-104.60 for a break
Also, the pattern is an inverse H&S