The dollar continues to trade just under the weekly timeframe bearish engulfing candle, as highlighted in last weeks DXY technical update. The US dollar had reached a three-year high versus a basket of currencies prior to the key reversal day and was trading just under the 0.764 Fibonacci level. The DXY has subsequently seen a period of consolidation this week after the sharp corrective move associated with this longer timeframe bearish candle. Nonetheless, there has been a lower close on the weekly basis. (full story)