Bearish Divergence on DXY , What’s Next?

4 days ago

The DXY appears primed for a significant drop. On the daily timeframe, a clear bearish divergence has formed, suggesting potential downside movement. Key support levels should be monitored, particularly in relation to the RSI. If the RSI holds around the 50 level, we could see a potential bounce; however, a continued drop into the oversold zone is also possible. The DXY's movement may also be influenced by the FOMC minutes release on January 9th, adding another layer of significance to these levels.