No man's land but potentially more downside for the DXY
The dollar index ended up breaking downwards this week. It is in no man's land between the channel formed by the 93.188 and around the ~92 levels.
BEAR CASE
We think there's likelihood for the price to find more downside to test and potentially even break the bottom of the channel to hunt the stop losses around the 91.8 and 91.5 areas before finding more potential upside.
BULL CASE
If price were to move upwards next week, we expect price to be rejected by the top of the channel and potentially form an ascending triangle pattern for a potential break to the upside.
BEAR CASE
We think there's likelihood for the price to find more downside to test and potentially even break the bottom of the channel to hunt the stop losses around the 91.8 and 91.5 areas before finding more potential upside.
BULL CASE
If price were to move upwards next week, we expect price to be rejected by the top of the channel and potentially form an ascending triangle pattern for a potential break to the upside.