The U.S. Dollars (DXY) big move down on Wednesday, 1/12/22, stopped when price hit a daily equal length swing target and the Ichimoku Cloud Span B. Additionally, price on the 60-minute chart reached an equal length swing target.
Price may continue lower to the Fibonacci .618 target of 94.676. However, it’s likely that price will bounce off current daily support points or at least flatten before the next wave down.
When DXY makes its break down, there should be some energy behind the move, so expect it to head towards the Fibonacci .786 target of 94.061.
The U.S. Dollars has been in a strong 60-minute down trend. Price has extended far away from the Ichimoku Cloud. As the Cloud acts at an equilibrium point, anticipate price will go flat or move up toward the cloud for the next day or two. The Ichimoku Cloud has been sinking with price therefore the two will come together relatively quickly.
Both the daily and 60-minute charts indicate solid support that DXY will have to push through before another profitable short sell.