DXY broke to the upside and rose significantly last week. But its rally looks likely to have come to an end for now. Therefore, we can expect a correction towards the support area as shown on the following chart.
Support is shown around 97.50. We have to keep in mind that the up trend has not been changed yet.
Trading ideas based on DXY
In the coming week, because of the expected correction on DXY, other major currencies that has fallen against USD now can expect a correction too.
Once the support is tested, USD can get strong again. So for the coming week, we prefer to short DXY with caution.
Disclaimer: Our analysis and forecasts given on this website are just our point of view about the market. It is not a trading signal or investment advice.