The DXY seems to be printing into an ascending wedge after a long uptrend which is a possible reversal signal.
Some stats on ascending wedge (source: centralcharts.com/en/gm/1-learn/7-technical-analysis/27-chart-patterns/502-rising-wedge
- In 82% of cases, the exit is bearish.
- In 55% of cases, a rising wedge is a reversal pattern.
- In 63% of cases, the pattern’s price objective is achieved when the support line is broken.
- In 53% of cases, the price makes a resistance pullback on the rising wedge’s support line.
- In 27% of cases, false breaks (false exits) appear.
This will likely break down, and could signal another rally for stock indices and crypto.
I almost can't believe that markets could rally with the macro landscape, but Powell's recent messaging seems to be mostly ignored and traders are calling the fed's bluff. Watch into the CIE data the day before the fed minutes and rate decisions are made, and if the fed isn't posting super hawkish rate hikes, you could really get a run on some crypto assets through september despite the fact that it's historically a bearish month.
Some stats on ascending wedge (source: centralcharts.com/en/gm/1-learn/7-technical-analysis/27-chart-patterns/502-rising-wedge
- In 82% of cases, the exit is bearish.
- In 55% of cases, a rising wedge is a reversal pattern.
- In 63% of cases, the pattern’s price objective is achieved when the support line is broken.
- In 53% of cases, the price makes a resistance pullback on the rising wedge’s support line.
- In 27% of cases, false breaks (false exits) appear.
This will likely break down, and could signal another rally for stock indices and crypto.
I almost can't believe that markets could rally with the macro landscape, but Powell's recent messaging seems to be mostly ignored and traders are calling the fed's bluff. Watch into the CIE data the day before the fed minutes and rate decisions are made, and if the fed isn't posting super hawkish rate hikes, you could really get a run on some crypto assets through september despite the fact that it's historically a bearish month.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.