Looking at the DXY on the daily timeframe we can see that the market is making a series of lower highs and lower lows, indicating a bearish market structure.
- The market is currently sitting at the 93.300 key level. This is a critical point for the DXY as we could see two probable scenarios:
***1. A third bounce from the 93.300/61.8% fib extension level to create another LH, before another sell off
***2. A break of the 93.300 level, a retest and further upside movement.
Personally, I am favouring the continuation of the bearish market structure (third bounce scenario); thus, will be looking to:
Sell - USDxxx pairs
Buy - xxxUSD pairs
Only if there is a valid set-up
- The market is currently sitting at the 93.300 key level. This is a critical point for the DXY as we could see two probable scenarios:
***1. A third bounce from the 93.300/61.8% fib extension level to create another LH, before another sell off
***2. A break of the 93.300 level, a retest and further upside movement.
Personally, I am favouring the continuation of the bearish market structure (third bounce scenario); thus, will be looking to:
Sell - USDxxx pairs
Buy - xxxUSD pairs
Only if there is a valid set-up