Hey traders,
If you remember a little while ago, I posted about the DXY or the US dollar currency index forming a double top formation. The analysis did come true in the sense that we bounced from the top supply area and back into that lower demand area, however, given if it were a proper double top, we would have broken that demand area and began to head lower. We failed to do that. So, our original analysis was partly correct, but it didn't get as far as we wanted to. We need to start having a look at what is next.
As you can see, we've started to form a sideways movement while we are breaking highs that we haven't seen since 2020. There's a lot that is going on behind the scenes influencing that, but if this does manage to break above this channel and get up to the price of 100 U.S. dollars, I think there's going to be a lot of news stories on that which will likely push the price back down. I have noticed when things get out in public and in the news, it's too late, the move has already happened and that's when we start seeing the reversals.
I think we're going to be sitting in this channel for a little while, so it'll be interesting to see how the US dollar pairs up against other currencies. But if we do get a break out, I could see a massive impulse of volatility coming through. Keep an eye on it. Let me know what your analysis is and if you are trading on the smaller timeframes, I'd be looking for your targets be around these levels.
Let me know what you guys think. Leave a comment if you enjoyed this analysis or you enjoy this little outlook rather than a trade idea. If there is anything you want to point out or note, please let me know and leave a like!
Good luck traders.
If you remember a little while ago, I posted about the DXY or the US dollar currency index forming a double top formation. The analysis did come true in the sense that we bounced from the top supply area and back into that lower demand area, however, given if it were a proper double top, we would have broken that demand area and began to head lower. We failed to do that. So, our original analysis was partly correct, but it didn't get as far as we wanted to. We need to start having a look at what is next.
As you can see, we've started to form a sideways movement while we are breaking highs that we haven't seen since 2020. There's a lot that is going on behind the scenes influencing that, but if this does manage to break above this channel and get up to the price of 100 U.S. dollars, I think there's going to be a lot of news stories on that which will likely push the price back down. I have noticed when things get out in public and in the news, it's too late, the move has already happened and that's when we start seeing the reversals.
I think we're going to be sitting in this channel for a little while, so it'll be interesting to see how the US dollar pairs up against other currencies. But if we do get a break out, I could see a massive impulse of volatility coming through. Keep an eye on it. Let me know what your analysis is and if you are trading on the smaller timeframes, I'd be looking for your targets be around these levels.
Let me know what you guys think. Leave a comment if you enjoyed this analysis or you enjoy this little outlook rather than a trade idea. If there is anything you want to point out or note, please let me know and leave a like!
Good luck traders.
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