TechnoMeter

The three keys components that provided support were the Ichimoku Cloud base on the Daily Chart, which is comprised of the 50% retracement over the last 52 data periods. While price did break below the cloud technically, we did not see the lagging line (bright green) break into the cloud, and we did not see a strong move lower once price pierced the cloud, but rather price moved sideways before beginning this week’s retracement.
An eventual break below last week’s low of 99.23, followed by a lagging line move into and through the Ichimoku Cloud would be the clearest Ichimoku sign of a larger breakdown developing in DXY.



A zone of resistance to watch on the bounce would also be the 38.2-61.8% retracement region of the 2017 move, which is housed at 100.99-102.07. The wost case for Bulls (best case for Bears) would be a move to this zone that pivots and breaks above the zone above. A break above the Fibonacci zone could be indicative that we've seen the low in the USD for a while.

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