Price is currently at 95.47, which coincides as our first area of horizontal support and 50% retracement from the last swing low of 94.16. Subsequently, a head and shoulder pattern has formed. If price bounces the support area of 95.35-95.50, we may see a retest of the 96 handle before DXY plummets. Otherwise, the next area of support should 94.35 is broken, will be 95.00 and 94.80.
A retest of 96.00 is more likely though, before it tanks.
Shorting EURUSD, GBPUSD, AUDUSD, and GOLD would be a good idea. (You do not have to trade them all, pick one or two to lessen exposure on USD pairs should the price go against my prediction). Target 40-60 pips on these pairs.
Use appropriate lot size based on your account. Trade safe.
A retest of 96.00 is more likely though, before it tanks.
Shorting EURUSD, GBPUSD, AUDUSD, and GOLD would be a good idea. (You do not have to trade them all, pick one or two to lessen exposure on USD pairs should the price go against my prediction). Target 40-60 pips on these pairs.
Use appropriate lot size based on your account. Trade safe.
DXY playing exactly as expected. It first went up for a retest before tanking. 94.80 is the next level to watch. If it respects the uptrend and bounces off the trendline, then we can expect to buy USD again and sell other currencies.
We will see how it plays out next week!