DXY rallying soon? Aftermath of comments by Donald Trump.
The Dollar Index, symbol DXY, is currently at areas of demand, which means that there are many buyers waiting to get into the trade, so that soon (this week) there will likely be a large rally from the current support, all the way to the next level of resistance. This next area of resistance is known as the supply zone, and there will be sellers waiting here to, trying to push the DXY to lower levels. Once this key area, (around 100.35) is surpassed, the Dollar Index will have some room to keep rallying further, exceeding the recent highs that were reached not long ago.
The price action of the chart has also lead to a shape similar to a falling wedge, which is only something that precipitates a rise once the instrument breaks out. Currently having taken shape at a zone of heavy demand, odds are likely that buyers are ready to step in and push the prices higher as sellers likely have run out of steam.
Comments from President of the United States, Donald J. Trump, has lead to some recent decline in the dollar. His remarks about the strength of the dollar being too powerful has led to a temporary sell-off. Will his comments lead to a weakening dollar overall? Or will his comments have merely allowed for some sideways action within the supply and demand zones? This effect only giving time for the index to rally at a later date and time. Perhaps we must all wait and see for where the Dollar Index will go from here.
Also, post-France's elections, with President Macron now being France's political leader, the Euro seems to be headed for some decline just after it's sudden leap in points. Was the surge in price too quick? Perhaps the speculation has lead to buyers acting too apprehensive, and sellers are trying to take control, pushing the Euro to new near-term lows in the coming weeks and months.
(The Euro makes up a large percentage of the Dollar Index)
The price action of the chart has also lead to a shape similar to a falling wedge, which is only something that precipitates a rise once the instrument breaks out. Currently having taken shape at a zone of heavy demand, odds are likely that buyers are ready to step in and push the prices higher as sellers likely have run out of steam.
Comments from President of the United States, Donald J. Trump, has lead to some recent decline in the dollar. His remarks about the strength of the dollar being too powerful has led to a temporary sell-off. Will his comments lead to a weakening dollar overall? Or will his comments have merely allowed for some sideways action within the supply and demand zones? This effect only giving time for the index to rally at a later date and time. Perhaps we must all wait and see for where the Dollar Index will go from here.
Also, post-France's elections, with President Macron now being France's political leader, the Euro seems to be headed for some decline just after it's sudden leap in points. Was the surge in price too quick? Perhaps the speculation has lead to buyers acting too apprehensive, and sellers are trying to take control, pushing the Euro to new near-term lows in the coming weeks and months.
(The Euro makes up a large percentage of the Dollar Index)
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