Technical Analysis: U.S. Dollar Breaks Down Out Of Wedge Pattern
Published At: Aug 03, 2024 by Verified Invesing
The U.S. Dollar has broken below a wedge pattern support trend line. This signals a high probability of further downside in the U.S. Dollar. The only way this happens is if the Federal Reserve is going to have to aggressively lower interest due to a recession.
The labor market is showing major weakness and the Federal Reserve is beginning to get nervous. This could be seen in the latest comments from Federal Reserve chairman Jerome Powell.
In addition, the yield curve is near an uninversion. Historically, this is when recessions hit.
These factors plus the chart signal further downside in the U.S. Dollar in the coming weeks and months. The first downside support on the DXY (Dollar) is $99.75.
