$DXY is likely to continue horizontally in September and could sharply advance in October. Let’s have a look at some signals.
In August $DXY formed a bullish candle that is likely part of a bigger bullish continuation combo. If the index follows the classical steps (and I have a few reasons to believe it would), it should move horizontally for one more month and then resume the rally upwards.
The level to watch is $91. If the following weekly/monthly candles close below, this would be a first bearish signal. But so far, the odds are bullish.
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