Follow-up: Will the USD start recovering or what!?
Hello traders!
I hope you are having a good week. We will follow up on the analysis from a few days ago talking about the recovery or fall of the US dollar. We can see how the market ends up confirming the bullish flag pattern, also breaking the weekly resistance (in blue) located around 1.2200.
It is still possible that we are facing a false breakup before a dump, recovering the aforementioned area as a resistance, so, in case we want to get into some trades, an alternative to reduce risk is to use cost averaging techniques, taking a small operation and increasing it little by little.
In my opinion, while the market remains above 1.2200, the bullish plans will continue to be viable, being able to reach 1.2300 as an initial goal since it is a psychological level, or even carrying out a rally towards 1.2400 - 1.2500, an area in which we have a weekly resistance that hasn't been visited in years.
Regarding the dollar index $ DXY, from our analysis in which we took a look at how it had behaved in recent weeks, we can see how it has simply continued its bearish course. It recently broke the psychological zone of 90.00, however, it is a too recent break to be able to trust it, since, at the time of writing this idea, it has barely pierced it for a few cents.
I hope you are having a good week. We will follow up on the analysis from a few days ago talking about the recovery or fall of the US dollar. We can see how the market ends up confirming the bullish flag pattern, also breaking the weekly resistance (in blue) located around 1.2200.
It is still possible that we are facing a false breakup before a dump, recovering the aforementioned area as a resistance, so, in case we want to get into some trades, an alternative to reduce risk is to use cost averaging techniques, taking a small operation and increasing it little by little.
In my opinion, while the market remains above 1.2200, the bullish plans will continue to be viable, being able to reach 1.2300 as an initial goal since it is a psychological level, or even carrying out a rally towards 1.2400 - 1.2500, an area in which we have a weekly resistance that hasn't been visited in years.
Regarding the dollar index $ DXY, from our analysis in which we took a look at how it had behaved in recent weeks, we can see how it has simply continued its bearish course. It recently broke the psychological zone of 90.00, however, it is a too recent break to be able to trust it, since, at the time of writing this idea, it has barely pierced it for a few cents.
