VOT Research Desk
The DXY Index reverted to the multi-month ascending triangle consolidation with last week’s close, indicating that the US Dollar may be more broadly prone to further decline in the near future. In recent days, the technical prognosis has shifted toward the downside.
Although the moving average envelope is not yet in a negative consecutive pattern, the DXY Index is below its daily 5-, 8-, 13-, and 21-EMAs. The DXY Index is currently below its daily 21-EMA (one-month moving average) for the first time since August 12, which is an important development. Additionally, bearish trends are being shown by momentum indicators. Daily Slow Stochastics have fallen below their median line and the daily MACD is decreasing while still being above its signal line. A decline below the 107.59 late-August swing low would indicate a top has built.
