Hello, dear traders. I hope you're all having a great week.
Last week, we were looking to buy the DXY in two areas, which turned out to be very successful, and you can review those details in the attached chart.
However, on Friday, the price managed to break below our important daily low, shifting the market structure to the downside. Now, in the 4-hour timeframe, we are exploring potential areas for selling.
As the price has been moving higher in the last two days in a corrective manner, it's approaching the first resistance area, which previously acted as support. This area also coincides with the 38% Fibonacci level.
Nevertheless, we are more inclined to see the price rise further to test our second resistance area, as it offers a better Risk-to-Reward ratio and aligns perfectly with more bearish confluences.
It's important to note that while the 4-hour timeframe has shifted to a bearish market structure, with expectations of further downward movement, the daily timeframe still displays a bullish trend, and this 4-hour move is essentially a corrective move within the daily timeframe.
If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
Comment:
still waiting for price to reach our trading zone
Comment:
price failed to reach out the level we were hoping for price to hit. so no trade for us in USD
Comment:
As long as this bearish formation (formation of lower lows and lower highs) persists, we consider nothing but shorting the USD against other pairs. However, if the 4-hour timeframe Lower high as it mentioned in the picture is broken to the upside, then the bearish structure has been violated, there might be buying opportunities.
As long as this bearish formation (formation of lower lows and lower highs) persists, we consider nothing but shorting the USD against other pairs. However, if the 4-hour timeframe Lower high as it mentioned in the picture is broken to the upside, then the bearish structure has been violated, there might be buying opportunities.
