DXY Reversal Puts Pressure on USD as Markets Enter Pivotal Phase

The markets are experiencing a pivotal moment as the US dollar index (DXY) shows signs of reversing its trend, potentially boosting currency pairs, stocks, and crypto. Bitcoin (BTC) remains in bearish consolidation, having failed to close above the 0.786 Fib level after the Fed's rate hike announcement. Ethereum (ETH) also confirmed a bearish divergence on Wednesday.

OTHERS.D dominance reached a significant trigger point, closing up 2.56% and hitting immediate TBO resistance. A close above this resistance would confirm a strong bullish uptrend, but it is not yet confirmed. The author expects runway towards just over 9%, advising to take profit on the way up.

The DXY rose nearly 1% after the Fed decision, moving above its Cloud into strong bullish mode and reaching historical TBO resistance. This has triggered a reversal lower, making currency pairs, stocks, and crypto more attractive. The S&P futures remain technically in bearish consolidation, but the author still expects dips to be bought.

Light Crude Oil Futures ended their extreme overbought RSI streak, confirming a bearish RSI Reset. This is expected to lead to a fall in oil prices, although it may take a few days.