Hello All,
Down with the dollar?
As we can see since the Covid scare the DXY went through a period of pretty extreme volatility. After the huge rally the dollar quickly receded to roughly 50% of its move, which aquatinted to 4.6% decline from resistance (103.00)to where support was found (98.3), and from their pretty much consolidated until mid may where we were presented with another decline.This one a bit less at only 3% but nonetheless a decline. After the drop we consolidated in a bear flag. Considering the consolidation pattern and break to the downside it was evident we were entering bearish market territory/structure. After another decline of around +4% we have yet again seemed to be stuck in what appears the be another bearish consolidated phase. LH's and HL's will set up up for a huge explosion of PA either to the up side or down. Based on market structure and price action im looking at this setup at 70% to the downside and 30% to the upside. With the recent declines in the 3-4% range anticipating another leg down at 4% would line up nicely to the previous support level back in 2018 at 89 handle and resistance level back in 08/09. at 89 handle.Their is another level around the 91 handle that shows some PSR levels as well. So, if a break occurs to the downside it might be a nice place to snag some profits and reduce your risk profile.
If price breaks to the upside and breaches the 95 handle this idea is invalidated.
This idea is sentiment based and in the direction in which is considered to be the most likely scenario.
AS always this is not financial advice. This is purely based on my perception of the markets at this time.
Down with the dollar?
As we can see since the Covid scare the DXY went through a period of pretty extreme volatility. After the huge rally the dollar quickly receded to roughly 50% of its move, which aquatinted to 4.6% decline from resistance (103.00)to where support was found (98.3), and from their pretty much consolidated until mid may where we were presented with another decline.This one a bit less at only 3% but nonetheless a decline. After the drop we consolidated in a bear flag. Considering the consolidation pattern and break to the downside it was evident we were entering bearish market territory/structure. After another decline of around +4% we have yet again seemed to be stuck in what appears the be another bearish consolidated phase. LH's and HL's will set up up for a huge explosion of PA either to the up side or down. Based on market structure and price action im looking at this setup at 70% to the downside and 30% to the upside. With the recent declines in the 3-4% range anticipating another leg down at 4% would line up nicely to the previous support level back in 2018 at 89 handle and resistance level back in 08/09. at 89 handle.Their is another level around the 91 handle that shows some PSR levels as well. So, if a break occurs to the downside it might be a nice place to snag some profits and reduce your risk profile.
If price breaks to the upside and breaches the 95 handle this idea is invalidated.
This idea is sentiment based and in the direction in which is considered to be the most likely scenario.
AS always this is not financial advice. This is purely based on my perception of the markets at this time.