Dollar Strength Divergence 8/31/2020

31 ส.ค. 2020

DXY at the daily view.

The DXY tanked recently due to the Japanese Prime Minster resigning due to health related issues. That caused the Japanese Yen to rally and the dollar to sink more. As a result, that event ruined my potential inverse head and shoulders pattern... rats.

The DXY seemed to have been saved by the RSI uptrend support at the daily view. I did see something interesting. The dollar's "price" is at a downtrend. However, the daily RSI is at an uptrend. The divergence is still ongoing. This seems like that the bullish divergence that hasn't quite played out yet.

How far will this bullish divergence will go? I have no idea. If the dollar forms a complete IHS pattern, then it may provide a clue when big tech and PMs may pullback. Until then, I'll be waiting... again.

1 ก.ย. 2020

บันทึก

Whelp, dollar just broke RSI support. So much for this theory.

1 ก.ย. 2020

บันทึก

Whelp, I was wrong and it just keeps sinking. Looks like it's going to be a wait and see week with the DXY.