US Dollar index began the day near 90.27 and pushed as high as 90.57 midway through the US morning session. The index reversed entering the UK fix and traded as low as 90.16. Later, on Powell’s comments, the index traded down to 90.07! Yesterday, on a 240-minute timeframe, the DXY appeared to be heading higher out of a flag pattern. However, with today’s volatile price action, the DXY may have made a false breakout above the flag. Of course, nothing moves in a straight line, but
if price closes below 90.19, it would invalidate the flag patten and DXY could make another push lower towards the psychological
90.00, where bulls will be looking to reenter longs. Today’s highs of
90.57 acts as resistance.