$DXY Weekly - Last leg higher before some consolidation?
The DXY Index has seen a spectacular move since the start of its recent uptrend in May 2021 - >10% in under a year. The move has been aggressive, offering very little in the way of pullbacks. However - we are starting to see the first signs that the index may be due some consolidation, namely:
1) Large extension from 200-day SMA (yellow)
2) Overbought RSI
3) Bearish RSI divergence
4) Extension from steep upward sloping support (green)
5) Nearing lateral resistance at 100.45
6) Nearing top of triangle (101.50)
Is the top confirmed? - Certainly not yet, and the bigger picture still looks constructive for the dollar. However, one could argue the current strengthening trajectory is unsustainable, and even in an uptrend - a pullback/consolidation is considered healthy.
1) Large extension from 200-day SMA (yellow)
2) Overbought RSI
3) Bearish RSI divergence
4) Extension from steep upward sloping support (green)
5) Nearing lateral resistance at 100.45
6) Nearing top of triangle (101.50)
Is the top confirmed? - Certainly not yet, and the bigger picture still looks constructive for the dollar. However, one could argue the current strengthening trajectory is unsustainable, and even in an uptrend - a pullback/consolidation is considered healthy.
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