DXY is bouncing from the 90.74 level on the quarterly chart shown below. This bounce is leaving the uptrend which began in 2011 still open and the Pitchfork channel active and positioned well for continuation.
Looking further, as our top-down analysis is going, we can see on the monthly chart that the pair bounced from 91.20 level. Last month it had the bearish candle overshadowed the bullish turn but closing the month still above the 92 level. In the near-term, in the last few weeks of this year the key level is 91.84 and this should be on a watch.
Moving on to a weekly chart, DXY experienced a correction of the recent uptrend and has made a doji in the last week which could indicate a turn or a hold. To overcome recent weakness the instrument need to rise above the 94 level, that will make this doji candle a turn.
On a daily chart, we can see that the instrument is reacting for the second time of 92.90 level and with the positive RSI (13) divergence. A break above the 93.40 level is needed for the complete upside turn and the possible upside test of the 200 SMA 96.05 level. The break below the 92 level will negate the upside reversal.Â
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