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DXY (USD Index) 4Hour Analysis January 3rd, 2021

Short
TVC:DXY   U.S. Dollar Index
DXY Short Idea

Weekly Trend: Bearish
Daily Trend: Bearish
4Hour Trend: Bearish

Trade scenario 1: DXY is still very bearish and has established a strong bearish channel on this 4hour timeframe. From here we’re waiting for rejection of our 61.8% fib level with a moving average cross. Look for price action to fall toward 89.000.

Trade scenario 2: If we are to consider price action bullish we need to see a transition occur above 90.200. If this happens look for a breakout toward 90.800 as the next major resistance.

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