DXY, Downside Targets Reached, This Is What Can Happen Now!

Hello Traders Investors And Community, welcome to this update-analysis where we are looking at the USD Currency Index 4-hour timeframe perspective, its recent events, the current price-formation, what we can anticipate of possible outcomes, and what needs to happen in order for the proper confirmation and possible trade entry. The overall downside targets I mentioned in my past analysis about the index reached in the schedule as mentioned, I highly recommend you to watch this analysis about it to have a full-depth-overview as I pointed out the situation on higher timeframes also. For now, the big and important question to ask is if the index manages to stabilize at the current level or if it continues with its established bearish pressure, in this case, I found some interesting signals which can determine this further outcome.

Initial Analysis According The Subject (1-Week, 1-Day, 1-Hour Timeframes):

As you can watch now when looking at my chart is that the index reached the overall targets rightly and now testing these levels which is by the way also resistance, it already tested this level one time bounced from there and now testing it a second time, when the index succeeds here and confirms it a second time this can lie the groundstone for a possible double bottom formation, therefore, it is from high importance that the index stays above the established 95.72 low otherwise a fall below this level can invalidate the double bottom scenario and can show up more bearish pressure to the downside when it does not hold. Furthermore, you can watch this green rising trendline below this level which is drawn from the major lows developed by the index the last months which needs to hold definitely in the long-run in order to confirm bullishness.

In order to confirm the possible double bottom scenario, it is from the high significance that the index confirms bullish in the current range and moves above the first falling resistance and after that above the second one you can watch marked in my chart with the blue lines, when this happens it can be measured as a first confirmation of the double bottom and can be a good entry for aggressive traders. When this played out in the right manner the index has to take out also the established highs at 97.8 to confirm the double bottom fully when it does it will be a decent and solid signal for more upside to come where the minimum target at 99.2 will be activated and even more upside when this level is reached. A bounce of the 500-EMA you can watch marked in black can indicate more upside to follow through.

In this manner, thank you for watching, support for more market insight, have a great day, and all the best to you!
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Information provided is only educational and should not be used to take action in the markets.