General analysis of the DXY index (measuring USD strength) on October 21, 2020:
- Today is the 3rd trading day of the week that all 3 days are strongly decreasing days for DXY when the DXY index broke the support at 93.00 after positive news about stimulus package negotiation. in America appeared. It seems that the market is focusing on this leading factor and will not be able to deny the technical picture showing that DXY might return to the bottom level of 91.75 index points (bottom created on September 1, 2020).
- However, in order to get to that price zone, it will have to close below the 92.4-point range for the time being, the reason is not unfamiliar that this is the strong support zone on the weekly chart of W1 and we can see the zone. This price is very sensitive when it is asymptotic to the uptrend channel which lasted since April 2011 (nearly 10 years).
- Personally, in my opinion, it is a bit difficult to have a deal ahead of the US election on November 3 and the news we read today may just be instantaneous leading the market at a time. Agreement may be made, but it will be after the election.
- Therefore, for the DXY index, although up to the time I analyze the downward force of this index is still dominant and strong, but in this price area, I do not consider selling down for USD anymore and waiting to buy USD will be the direction in my opinion. And maybe tomorrow will be the recovery day of this DXY index.
- So in the short term now and tomorrow let's find a buy point for USD / XXX pairs and sell down with XXX / USD including GOLD (XAU / USD)
(Currently the DXY index price when analyzing at 92.47 index points, this index is used to analyze the USD-related currency pairs, not trading).