DXY at the daily view.
The dollar strength is at a decisive point. The dollar is at the top of the downward channel. The bullish RSI divergence is finally played out. That divergence help the dollar rally relentlessly. Furthermore, there is an inverse head and shoulders pattern forming at the daily scale.
An IHS pattern is not bullish until the neckline is broken. That neckline may be the old 11-year-old channel support (green dashed line).
The right should should form around September 15-17. Coincidentally, that's also when the VIX is coiled up for another move. If the dollar strength breaks the neckline above by September 15-17, that might cause another selloff in the NQ and decrease precious metals too. Once the dollar rallies, that may provide a prime buying opportunity for precious metals.
The dollar strength is at a decisive point. The dollar is at the top of the downward channel. The bullish RSI divergence is finally played out. That divergence help the dollar rally relentlessly. Furthermore, there is an inverse head and shoulders pattern forming at the daily scale.
An IHS pattern is not bullish until the neckline is broken. That neckline may be the old 11-year-old channel support (green dashed line).
The right should should form around September 15-17. Coincidentally, that's also when the VIX is coiled up for another move. If the dollar strength breaks the neckline above by September 15-17, that might cause another selloff in the NQ and decrease precious metals too. Once the dollar rallies, that may provide a prime buying opportunity for precious metals.