In this blog space we have been watching the Cup and Handle pattern in the small cap index $RUSSELL. Back in July 15 we said that there is a major resistance @ 2400.
$RUSSEL: Completion of Cup and Handle formation or higher? for IG:RUSSELL by RabishankarBiswal — TradingView
But as we are near the top of the previous high and towards the end of the completion pattern of this major Cup and handle formation for almost 3 years, we must see which direction the index will resolve. For that we need to investigate US Dollar index $DXY.
We have been bearish on
DXY with 95 as our short-term target. Currently @ 97 this 2% down movement can provide major boost to risk assets and $RUSSELL.
DXY: New lows begets new lows. 
USM2: Why is it increasing? for TVC:DXY by RabishankarBiswal — TradingView
With major Fed decision coming next week and weakness byDXY we can say the path of least resistance for RUSSELL is upwards and breaks above the major resistance in this cup and handle pattern.
Verdict:RUSSELL can go higher if DXY goes lower and Fed cuts. Once above 2400 then we are in price discovery mode for $RUSSELL.
$RUSSEL: Completion of Cup and Handle formation or higher? for IG:RUSSELL by RabishankarBiswal — TradingView
But as we are near the top of the previous high and towards the end of the completion pattern of this major Cup and handle formation for almost 3 years, we must see which direction the index will resolve. For that we need to investigate US Dollar index $DXY.
We have been bearish on
DXY with 95 as our short-term target. Currently @ 97 this 2% down movement can provide major boost to risk assets and $RUSSELL. DXY: New lows begets new lows. USM2: Why is it increasing? for TVC:DXY by RabishankarBiswal — TradingView With major Fed decision coming next week and weakness by
DXY we can say the path of least resistance for RUSSELL is upwards and breaks above the major resistance in this cup and handle pattern.Verdict:
RUSSELL can go higher if DXY goes lower and Fed cuts. Once above 2400 then we are in price discovery mode for $RUSSELL. 
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Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.