Hello,
The dollar index
DXY
started an uptrend from 100.600. After reaching the liquidity zone around 104.900, it faced a correction due to profit-taking by buyers. The correction extended down to the demand zone at 102.300.
The index has bounced back from the demand zone and is trading at 104.000.
The EMA is moving between the candlesticks, indicating a range-bound market.
If the daily candle closes with a strong body, we can expect positive movements towards 104.400 and 104.975.
We must observe how the price reacts at these levels to understand the further trend.
If the index breaks above 104.970/105 and consolidates, it can create a new high above 104.976 and potentially reach 105.500/106.
Otherwise, after ranging and confirmation of SELL in lower time frames, we may see a correction.
The key support levels are 103 and 102.350.
Remember, this is just a technical analysis and not financial advice. Always do your research before making any investment decisions.❗❌
I hope this analysis was helpful! If you have any questions, feel free to ask.🙌
The dollar index
DXY
started an uptrend from 100.600. After reaching the liquidity zone around 104.900, it faced a correction due to profit-taking by buyers. The correction extended down to the demand zone at 102.300. The index has bounced back from the demand zone and is trading at 104.000.
The EMA is moving between the candlesticks, indicating a range-bound market.
If the daily candle closes with a strong body, we can expect positive movements towards 104.400 and 104.975.
We must observe how the price reacts at these levels to understand the further trend.
If the index breaks above 104.970/105 and consolidates, it can create a new high above 104.976 and potentially reach 105.500/106.
Otherwise, after ranging and confirmation of SELL in lower time frames, we may see a correction.
The key support levels are 103 and 102.350.
Remember, this is just a technical analysis and not financial advice. Always do your research before making any investment decisions.❗❌
I hope this analysis was helpful! If you have any questions, feel free to ask.🙌
Comment:
🔄 UPDATE : As you can see on the daily timeframe, the dollar index has failed to sustain above the 104.970 level and is facing a corrective trend. On the daily timeframe, it could undergo further correction towards the 103.600 to 103.400 range❗️
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