DXY analysis: break of the 4-hour trendline calls for further downside

DXY rose in the early part of last week but then broke through the trendline of 4-hour to the downside. This could mean that in the near term the Dollar Index could have reached its top and heading for consolidation.

DXY 4-hour

Therefore, we can look for upwards correction from here to look for sell setups from there, around 110 level.

However, if it goes up and with upwards impulses and downwards corrections in smaller timeframe and pierces through 110 level, it can break the previous top once again. However we will not be looking for any buy setups from that level.

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Amir is a graduate in International Economics. He has been active in the financial markets since 2014.

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