My bias for the dollar is bullish, as I am expecting a major pull back from this key level of demand that we have marked out on the daily time frame. As you can tell by the price action, bearish pressure is now getting exhausted so, we will be looking out for a wyckoff accumulation on the lower time frame to give us more confluence that this move will take place. As I don't personally trade the dollar, I will be using as it a sign to sell my other pairs.
As we know already if the dollar becomes bullish we will expect bearish pressure for pairs like GU, EU and gold, visa versa. In addition to this, the daily demand holds a lot of significance as it has broken structure to the upside and swept liquidity therefore, we can expect a nice reaction from this AOI to potentially mitigate the supply above or fill the imbalances that have been left.
My confluences for DXY$ Longs are as follows:
- Overall DXY market is still long term bullish even though we temporarily bearish.
- Price mitigated a strong level of demand on the (daily Time frame) that caused a BOS to the upside.
- Price tapped in very slowly and the candle sticks have less volume, indicating that the bearish pressure is now exhausted and price is now looking like it wants to reverse.
- Wyckoff accumulation has started to form very gradually on the lower timeframe.
- Theres lots of imbalances above to target as well as supply zones to mitigate in order for price to continue in its bearish trend.
- Price has also taken out a key level of engineering liquidity on the way down approaching the zone, so now price has enough liquidity to move the market back up.
P.S. I am still bearish but as price has tapped in a key level, my thoughts are to buy back up to the nearest supply in order for us to follow the dollar trend downwards. I will be waiting on what market does on Monday as I will be looking for imminent Sells for EU, GU and XAUUSD.
As we know already if the dollar becomes bullish we will expect bearish pressure for pairs like GU, EU and gold, visa versa. In addition to this, the daily demand holds a lot of significance as it has broken structure to the upside and swept liquidity therefore, we can expect a nice reaction from this AOI to potentially mitigate the supply above or fill the imbalances that have been left.
My confluences for DXY$ Longs are as follows:
- Overall DXY market is still long term bullish even though we temporarily bearish.
- Price mitigated a strong level of demand on the (daily Time frame) that caused a BOS to the upside.
- Price tapped in very slowly and the candle sticks have less volume, indicating that the bearish pressure is now exhausted and price is now looking like it wants to reverse.
- Wyckoff accumulation has started to form very gradually on the lower timeframe.
- Theres lots of imbalances above to target as well as supply zones to mitigate in order for price to continue in its bearish trend.
- Price has also taken out a key level of engineering liquidity on the way down approaching the zone, so now price has enough liquidity to move the market back up.
P.S. I am still bearish but as price has tapped in a key level, my thoughts are to buy back up to the nearest supply in order for us to follow the dollar trend downwards. I will be waiting on what market does on Monday as I will be looking for imminent Sells for EU, GU and XAUUSD.