DXY May Continue Short-Traders Eye ISM Data

Today the DXY has been moving lower and the 1 day chart has been showing signs of continued bearishness. It is possible for the DXY to continue short for now with medium risk. I am looking at the 108.870 target area for a retracement. Tomorrow the US will release economic data for ISM Non-Manufacturing PMI (Aug) Forecast: 55.1 Previous: 56.7 and it will be high volatility. Other currencies in the major basket have moved higher during the asian session and there was some nice daily momentum. Technically the RSI has shown potential bearish momentum and the near half period MACD has also shown bearishness. The default 1 day MACD has also continued to diverge. The daily 20 sma sits near 107.958 while the 5 day SMA sits near 109.413. It may be possible for a lower move today with medium risk, there should be a chance to break even in a few days if not. The EURUSD rate can move higher perhaps another 50 pips though this move is already half way complete, the move started in the asian session and showed strong momentum. USDCHF and USDCAD can also move lower 50 pips or more also these moves are half way complete already.
$USD Currency Index

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