DXY Daily TA Cautiously Bearish
DXYUSD daily guidance is cautiously bearish. Recommended ratio: 30% DXY, 70% Cash.
*China delayed publishing key economic data including retail sales, industrial production, home prices and Q3 GDP amidst Incumbent President Xi Jin Ping's expected reelection for a third term. Chinese officials say it's because of the ongoing National Congress of the Chinese Communist Party, but at the last Congress in 2017 the data was released promptly. This begs the question of how much of the delays are due to hopes of a swift economic recovery from their prolonged Covid lockdowns (and heat waves) being halted by sanctions and supply chain disruptions. Mastercard announced a partnership with Paxos today and together they will offer a program to financial institutions that will allow them to provide crypto trading to clients as well as guidance on regulatory compliance. Key Upcoming Dates: US September Building Permits and Housing Starts at 830am EST 10/19; 19th GDPNow US Q3 GDP estimate 10/19; S&P US October Manufacturing PMI at 945am EST 10/24; US October Consumer Confidence Index at 10am EST 10/25; US September New Home Sales at 10am EST 10/26; US Q3 GDP First Estimate at 830am EST 10/27; US September PCE Price Index at 8am 10/28; FOMC Statement at 2pm EST 11/02.*
Price is currently trending down at ~$112.13 after getting rejected by the upper trendline of the ascending channel from October 2008 at ~$114 as resistance and forming somewhat of a Double-Top pattern as a result. Parabolic SAR flips bearish at $110.20, this margin is neutral at the moment. RSI is currently trending down at 53 after being rejected by 59.17 resistance for the second time in one week. Stochastic remains bearish for the third consecutive session after crossing over at 51 resistance and is currently trending down at 33, the next support is at 24.14. MACD remains bearish after failing a second attempt at a bullish crossover and is currently trending down at 0.78 with no signs of trough formation as it approaches 0.65 support. ADX is currently trending down at 22 as Price is beginning to fall, this is neutral at the moment.
If Price is able to bounce here then it will likely aim to retest the upper trendline of the ascending channel from October 2008 at ~$114.50 as resistance which would coincide with $114.63 resistance. However, if Price continues to breakdown here, it will likely retest the 50 MA at $110 minor support. Mental Stop Loss: (one close above) $113.32.
*China delayed publishing key economic data including retail sales, industrial production, home prices and Q3 GDP amidst Incumbent President Xi Jin Ping's expected reelection for a third term. Chinese officials say it's because of the ongoing National Congress of the Chinese Communist Party, but at the last Congress in 2017 the data was released promptly. This begs the question of how much of the delays are due to hopes of a swift economic recovery from their prolonged Covid lockdowns (and heat waves) being halted by sanctions and supply chain disruptions. Mastercard announced a partnership with Paxos today and together they will offer a program to financial institutions that will allow them to provide crypto trading to clients as well as guidance on regulatory compliance. Key Upcoming Dates: US September Building Permits and Housing Starts at 830am EST 10/19; 19th GDPNow US Q3 GDP estimate 10/19; S&P US October Manufacturing PMI at 945am EST 10/24; US October Consumer Confidence Index at 10am EST 10/25; US September New Home Sales at 10am EST 10/26; US Q3 GDP First Estimate at 830am EST 10/27; US September PCE Price Index at 8am 10/28; FOMC Statement at 2pm EST 11/02.*
Price is currently trending down at ~$112.13 after getting rejected by the upper trendline of the ascending channel from October 2008 at ~$114 as resistance and forming somewhat of a Double-Top pattern as a result. Parabolic SAR flips bearish at $110.20, this margin is neutral at the moment. RSI is currently trending down at 53 after being rejected by 59.17 resistance for the second time in one week. Stochastic remains bearish for the third consecutive session after crossing over at 51 resistance and is currently trending down at 33, the next support is at 24.14. MACD remains bearish after failing a second attempt at a bullish crossover and is currently trending down at 0.78 with no signs of trough formation as it approaches 0.65 support. ADX is currently trending down at 22 as Price is beginning to fall, this is neutral at the moment.
If Price is able to bounce here then it will likely aim to retest the upper trendline of the ascending channel from October 2008 at ~$114.50 as resistance which would coincide with $114.63 resistance. However, if Price continues to breakdown here, it will likely retest the 50 MA at $110 minor support. Mental Stop Loss: (one close above) $113.32.
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