On the 4h chart, we can see the dollar index forming the wedge. So far, we have seen 2 rejections at the top of the trend line. Now, we are waiting for another rejection on this trend line, which is also a resistance and an overbought zone on the RSI. We would also be looking for a bearish candlestick pattern to confirm this reversal before shorting the index. If this holds true, we should see weakening across most dollar pairs (USD/XXX).
XXX = other currencies
DXY
XXX = other currencies
DXY