DXY

The DXY at a crossroads. It is in daily demand but it has breached it's lower trend line twice now. And the most recent higher high was not as much higher than the previous higher high as previous higher highs. It may be a little undecided about whether to fight south though the demand and start a new bearish trend or go north to continue the bullish trend . I think it will probably spend some time in the daily demand while it makes up it's mind. This may make for some unpleasant ranging for the EURUSD , which is in daily supply. If it resumes the bullish trend there is a good chance that it will make a lower high signaling a trend reversal which is due. Two trend line breaks and a weak higher high indicate that this trend is weakening. In any case I expect some consolidation here and in the EURUSD .