DXY has bottomed out around the 89.50 level and has continued to grind higher since. The next level that we took out was the 89.90 level which now acts as support and the upward trend line and pivot area. I expect a move higher in the dxy in the coming weeks and therefore I will sell the rallies in EURUSD and AUDUSD and buy the dips in USDJPY.
DXY broke out the descending shape - stalled for a while then moved expolosively 93.5
Waining mometum as selling has slowed, 1D bull divs also but short still a good bet here
At 1D Supply which is strong supply - continued/broke market structure to downside, OTE of recent down leg
We are at 1M demand - which helped this leg up and thus has already been...
Swing Trade Idea
Weekly - Bullish
Daily - Bullish with retracement.
Failed to break previous structure.
Applied fibonacci and sharply rejected the 0.786 level
Looks as though reversal followed from Biden's speech at 2:00am
Let me know what you see in the comments below?
Close above 92ish today, with a backtest of this level, would confirm DXY's move into this range where highs approach 95
I can't see it hitting this high, but it would defo make sense for it to collect some liquidity above 92.8 and test the mids
92.8 lines up well with golden pocket of recent play so that could be the top for DXY imo
If it does move to mids and...
Powell's speech on the 17th March - 6PM UK caused the DXY to dump big time
Made a few FX plays there expecting the dump to retrace which it did but sadly a couple L's due to stops that were too tight
Now its kinda a waiting game that this dump has completely retraced, as both sellers and buyers have been stopped out in effect
Will take today and tomorrow...
Following on from @Captain_Walker's post about DXY.
I believe the dollar will strengthen over the coming weeks after breaking out of its range.
Currently, DXY is bouncing off of the trendline and RSI is flashing a bullish continuation signal.
Assuming a higher high is made, we could see the start of an uptrending dollar.
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.
From what i can see before we can look to go long on the DXY we must wait for price to reach this area which i have marked out as support
No significant moves happen unless this area is reached and we are probably a few weeks away from that as yet
This is just my opinion, let me know your thoughts
When you are trying to determinate whether a market is trending or not, you have to use
bigger time frames such the 4H, the daily or the weekly time frame.
Lower time frame might trick you when it comes to determine the market