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Markets by Mike Paulenoff 6-4 - The USD (DXY) Exhibits Signs of a Significant Top

Tuesday June 4th, 2019 

by Mike Paulenoff

On the subject of the US Dollar, the attached chart of Dollar Index (DXY) shows intense weakness during the last three sessions, which has sliced beneath-- and triggered a negative cross of-- the 5 and 20 DMA's, and which has pressed beneath key near term support at 97.30 to 97.10. All of the action since about the third week in April has the right look of a Double Top and-or a Big "M" formation that is exerting downward pressure towards another challenge of the 200 DMA, now at 96.51.

We should not be surprised by a roll over in the USD. After all, it has been climbing since its Feb. 2018 low at 88.25 (+10.2%) amid a strong economy and a Fed "tightening" cycle. Now the Fed is worried about the economy, and lack of inflation, and tariffs, and tweets, and is sending out smoke signals that it is prepared to ease if necessary!  

All eyes on DXY 96.50 for a test of the 200 DMA in the hours/days directly ahead... Last is 97.07

$SPY $DIA $QQQ

Mike Paulenoff is author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking.

*  I really like Mike's charts and analysis. This is shared with my readers here via MPtrader.com  *


Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.

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