DXY technical analysis
In my high level musings blog earlier in the session, I brought up the following points re the DXY:
- "US dollar index at resistance post GDP.
- The thinking here could be that expectations were/are still overdone and the path of least resistance is to the downside for now."
Take a look at the charts:
Higher time frame thoughts:
- Here you can see price is at the resistance zone we've been looking at last week.
- You have to think that if the market overpriced the GDP release, then it's going to come off and being at resistance, this isn't going to be hard.
Intraday thoughts:
- Little break of a short term level.
- Starting to get some follow through now.
If the DXY is dropping, this is good for Cable longs. Let me get to GBP/USD...