US Dollar Index Price Analysis: Three Black Crows pattern is bad omen for Dollar
|- The US Dollar Index is forming a Three Black Crows bearish Japanese candlestick pattern.
- The price pattern is bearish and, if it completes, it will probably indicate more downside to come.
- Support comes in at swing lows in the 102s and 100s.
The US Dollar Index (DXY) is trading lower at 103.67. It is declining for the third week in a row, after peaking at 106.13 (June highs).
US Dollar Index Weekly Chart
The index might be forming a bearish Three Black Crows Japanese candlestick pattern (shaded blue rectangle), which has bearish connotations. If the current week ends as a bearish red candlestick that will confirm a Three Black Crows has completed and indicate more downside is expected to follow.
Assuming this is the case, the next downside target for the pair is support from the swing low at 102.32, followed by a similar swing low from late 2023 at 100.59.
The bearish view is complemented and reinforced by the bearish crossover of the Moving Average Convergence Divergence (MACD) momentum indicator below its orange signal line (circled).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.