DXY acts in an almost direct opposite relationship with BTC - DXY down, BTC up
Example: DXY uptrend from bottom of SR zone/falling wedge 6/7th Jan, BTC 42K top 8th Jan and moves into downtrend
Falling wedge broke and has now successfullly retested on the 1D chart - hold above 90.6 and DXY looks pretty bullish
This won't last for long though, couple weeks maybe,...
The DXY dropped below the key structural level marked introducing more sellers into the market.
Knowing how manipulated the dollar can be, I expect a strong crossover and upside continuation into the target zone.
Please see my previous analysis below.
There seems to be a common bias among traders that the dollar is going to strength long term, I disagree.
I think we will potentially see short term strength but overall the DXY has lots more downside to cover.
This sell off was simply a lure to introduce some sellers and wipe out existing buyers.
I would like to see a reversal from the box marked to the upside...
ANALYSIS 🔎
- DXY is printing a falling wedge pattern.
- This is a trend reversal pattern.
- A bullish one to be precise.
- RSI is printing a bullish divergence signal.
- Price is testing the falling wedge's resistance.
- There's a breakout potential.
BUY ENTRY ⬆️
- Breakout above the falling wedge's resistance.
TARGET 🎯
- Horizontal resistance level...
The king of manipulation is back pushing to the upside trying to fight its bearish sentiment. This won't last long in my view, I believe this is simply a lure for buyers before we see downside continuation into the target marked.
Here DXY is performing a major breakout to the upside, which will put it in a bull run for some weeks
We have bullish divergence on the daily and weekly, and hidden bullish divergence on the monthly
Talk about a momentum shift. After the 9-10 month bearish run it is now very likely gonna be the opposite for the dollar
This should cause weakness in BTC and the rest...
Dollar index may likely still move down to re-test the low at 89.28 as the bearish wedge on H4 indicates.
***After interpreting dollar index, I will be reviewing my H4 outlook on USDCAD while I tend to favour bullish wedge for USDCHF
N.B
- Let emotions and sentiments work for you
-ALWAYS Use Proper Risk Management In Your...
I have marked with an arrow the time's prior support gets attacked before downside continuation, It seems to be a common pattern on the DXY.
The USD is the most manipulated currency and for that reason, you need to tread carefully when trading or analyzing its close friend DXY.
I have marked the last arrow with a question mark because I believe we may see a...
Dollar index finally breakdown last December 2020 by violating the ascending trendline that has been keeping it afloat since 2008 (Technically 2011!). However, the index is now sitting close to a support level. The support level may cause a bit of reversal, but the overall bearing trend will be sustained as depicted on the chart.
N.B
- Let emotions and sentiments...
This is a busy chart with four instruments on it. But do take a careful look at what's going on.
I see the DXY (Dollar Index) heading south. Mainly from Sept 2020, Bitcoin has been benefiting from price advantage by what seems to be an increasing negative correlation.
(The DXY is a good index to get a feel of US Dollar strength because it checks the USD...
DXY is close to 91 levels which has been breached downside only once since Sept-17.
Must keep close watch on DXY closing below 91 which shall be early signs of continuing fund flow into emerging stock markets.
Any reversal from this level will strengthen bearish view on Nifty during last couple of weeks of December.
US Dollar Index #dxy has taken support below 92 levels closing which is the critical level. Once it starts moving up again it transpires into very bad news for emerging stock markets.
Dollar Index (DXY) is continuously taking Support at 92.00 levels in November and Nifty has consolidated around 12,800-13,000 during the same period.
It is the same levels from where DXY attracted investment and resulted in sharp correction in Nifty during September.
Just keep an eye out for DXY to retrace for shorting Nifty or to close below 91.70 to go long...
