- the DXY failed to keep the bear pressure this week so far on the technical side. it could instead finish the week in a strong bullish position as a positive technical market structure shows.
The dollar has been under pressure this week as signs of cooling inflation and a softening U.S. economy raised the prospect of Federal Reserve rate cuts. However the DXY index, which tracks the dollar against a basket of six major currencies, found solid support within the daily time frame that currently spans the 104.220-104.605 region.
The DXY index failure this week under the 104.108 which is the new low from this weeks bearish trend. lookd like DXY is setting up a bear trap. A bear trap is set when a market breaks below a tech level but then reverses and is usually a bullish sign. There is scope for a bigger recovery to test the at 105.290, the midpoint which is where the drop kinda started.
