Today we want to understand the relevant levels, directions, and important items for long or short situations on DXY.
SHORT SCENARIO: To understand this possible situation, we have to pay attention to the nearest Support zone (in this case, the key area 88-89), Which is a major target for a bearish movement due to the relevance that it had in the past. Let's assume that the price reaches that level or even goes a little bit below. IF that happens, before developing new swing setups, we should wait for a clear correction. The 2 green arrows represent the correction; the idea here is to give time to the price to see how this situation evolves. In case we can spot a clear ABC pattern or any corrective structure, We should wait for a breakout and define our next bearish target at 80 (Where we have a convergence between an ascending trendline and a support zone.
LONG SCENARIO: let's assume that the price reaches the key support and resistance zone (or even goes a little bit below). We can either try to catch a movement with a target on the broken ascending trendline (IF the price is above the key area, of course) OR we can wait for the price to reach the broken ascending trendline, wait for a small corrective structure (represented by the small circle) and then trade towards the next resistance zone at 100.00
That is our Swing plan for DXY, either for bullish or bearish scenarios. Thanks for reading!
SHORT SCENARIO: To understand this possible situation, we have to pay attention to the nearest Support zone (in this case, the key area 88-89), Which is a major target for a bearish movement due to the relevance that it had in the past. Let's assume that the price reaches that level or even goes a little bit below. IF that happens, before developing new swing setups, we should wait for a clear correction. The 2 green arrows represent the correction; the idea here is to give time to the price to see how this situation evolves. In case we can spot a clear ABC pattern or any corrective structure, We should wait for a breakout and define our next bearish target at 80 (Where we have a convergence between an ascending trendline and a support zone.
LONG SCENARIO: let's assume that the price reaches the key support and resistance zone (or even goes a little bit below). We can either try to catch a movement with a target on the broken ascending trendline (IF the price is above the key area, of course) OR we can wait for the price to reach the broken ascending trendline, wait for a small corrective structure (represented by the small circle) and then trade towards the next resistance zone at 100.00
That is our Swing plan for DXY, either for bullish or bearish scenarios. Thanks for reading!