The cocktail for US dollar weakness includes political, technical, and fundamental ingredients now.
The “weekly” chart of DXY is close to breaking below an 18-20-month running wedge pattern to the downside. This potential break coincides with the 55-week moving average.
- We view the 200-day moving average (DMAVG) as a short-term trend change.
- We view the 55-week moving average (WMAVG) as an intermediate-term trend change.
- We view the 200-week moving average (WMAVG) as a cycle change.
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