So I keep hearing folks talk about a USD peak but I see a DXY which has broken out of a wedge and is now testing the break out. Using the EURUSD as a proxy (because it has a c.58% weight in the DXY), you can see the inverse:-
1. a breakdown from a continuation wedge,
2. test of the breakdown,
3. over-extended and mean reverting MACD
4. price volume support turning into overhead resistance.
After all, you just had the US Feds reaffirm higher and longer while the EU, despite the higher inflation, is fighting a proxy war against Russia with a rapid build-up of military forces and non-Russian energy infrastructure. No prizes for guessing which is the more hawkish central bank.
1. a breakdown from a continuation wedge,
2. test of the breakdown,
3. over-extended and mean reverting MACD
4. price volume support turning into overhead resistance.
After all, you just had the US Feds reaffirm higher and longer while the EU, despite the higher inflation, is fighting a proxy war against Russia with a rapid build-up of military forces and non-Russian energy infrastructure. No prizes for guessing which is the more hawkish central bank.