DXY On the Tech Angle: Awaiting for new catalyst

Brief Insight: US Dollar Index

The USD slight recovery from the opening of Asia was limited as most traders are awaiting for the NFP report. And this has led the market to trade in lackluster conditions across the board. 

Meanwhile, the RBA rate cut barely made a serious dent at the end of the day's trading that pushed the Aussie back to its previous level nearing the 0.7965. And this goes the same way with the Euro after a round turn of profit-taking that saw a short-lived downturn while working its price swing back higher above the 1.1200. 

When we called an official validation and confirmation of the DXY dated April 30th for a continuing decline; watching the 95.05/10 levels and currently @94.88 to this writing would seem to loose its momentum while waiting for  another valid catalyst to reaffirm its negative tone. The formation is a double-edge sword that literally means that prices has a wider trading range in both directions. For purpose of trade presentation, deciding to use this Trading-View version for our brief market insight would be most appropriate.  

The succeeding cluster of declining prices in yellow coded color block signify a negative sentiment hoovering. Especially, since its already part of a new wave cycle as indicated by the Elliot wave (Blue shaded channel) from where it came from. However, the monthly chart would indicate a new flag formation which still is well within its bull channel contrary to the negative sentiments prevailing in the market.