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...