- The weekly chart of the DXY index shows the breaking of a descending wedge.
- The DXY index could rise to September highs above 94.50.
The DXY US Dollar Index, which measures the strength of the dollar against a basket of major currencies, appears poised to confirm the breaking of a falling wedge, a bullish reversal pattern, on the weekly chart.
The DXY index has turned the resistance of the channel into support, currently at 90.00. A close above that level would confirm the bullish breakout and open the doors for a rally to 94.72 (September high).
The daily chart also indicates that the path of least resistance is to the upside. The bullish outlook will be invalidated if the DXY index finds acceptance below the former resistance now turned into support for the inverted shoulder-head-shoulder pattern that broke to the upside earlier this week.
US Dollar Index DXY Weekly Chart
US dollar DXY index technical levels
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