DXY between the 1D MA50 and 1D MA100

The U.S. Dollar Index (DXY) is at the moment on a short-term rebound, following the higher than expected U.S. CPI, which is a indicator of inflation, critical to the Fed's Rate policy. Technically the price is pressured by the 1D MA50 (blue trend-line) as a short-term Resistance and at the same time supported by the 1D MA100 (green trend-line). Short-term traders should trade the break-out that prevails and closes the day: i.e. above the 1D MA50 = bullish targeting the 97.450 Resistance, below the 1D MA100 = bearish targeting the 1D MA200 (orange trend-line).

On the more medium-term, we can see two Channel patterns. The dominant one, the green Channel Up, which is leading the price since late September but if the 1D MA100 breaks, a Channel Down may emerge. That will have the 1D MA200 on its Lower Lows trend-line close to the end of the month. The strongest case for the Channel Down prevailing is made by the 1W MACD which has formed already two Bearish Crosses.



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