NFTRH+; near-term options for Uncle Buck

Back to the daily chart of USD (DXY), note the potential for a downtrend channel to be forming off of the latest drop as it tries to muster a bounce. But also note the price under the SMA 50. Taking that out would be the first step to plan for a bounce.

One option could be for a pop to the top of the channel, which would be in keeping with this oh so predictable (logical, at least thus far) 2022 market. USD could bounce in line with pro-USD, pro-Fed hawk, anti-asset market sentiment and drop again later. It’s a process, remember. An ultimate downside target – if this were to turn out to be a top of some kind – would be the 105 area. That is the major daily uptrend marker (orange SMA 200).

Another option is that it is a bull flag forming. If that were the case the short-term downtrend could drag on for an indefinite period of time before a new surge in the bull market. In that case maybe 108 would contain the pullback.

Gary

NFTRH.com