The Dollar Index Breaks Down, Resumes its Larger, Dominant Downtrend

We have discussed in the recent past that when the Dollar has a pronounced, dominant directional trend from January into the Q3, and there is a failed counter-trend rally, the dominant trend trend nearly always reasserts during Q4 into year-end.

If this year's profile follows such a scenario, then DXY weakness off of the 10/27 and 11/07 highs at 95.15 represents the initiation of a new downleg within the dominant downtrend that began in Jan. 2017, which should press DXY to new lows beneath 91.01 towards 88.30/00

11 22 17 DXY Day GIF
11 22 17 DXY Day GIF
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