Multi symbol analysis (weekly) : DXY seems to be moving lower!
Now that the US elections are behind us, all the intentions of the weekly chart of US DOLLAR / DXY seem as if it's going to move lower!
It is forming bearish order blocks (on Weekly), trapping longs all along the way since March 2020 & also there are a bunch of shorts trapped from April 2018 timeframe that would love an exit. Till price action reaches those zones, DXY is heading lower!
What this means?
USDXXX pairs to move lower
XXXUSD pairs to move higher
Equity to head higher
Another reason DXY could head lower is if more stimulus gets announced for the US economy.
I'll add more evidence from other forex pairs about why I think this move could be verified.
PS : Another way DXY could move is in a consolidation - as below the current price, we have unidirectional price movement from Apr 2018 timeframe - which could counteract lower movement.
It is forming bearish order blocks (on Weekly), trapping longs all along the way since March 2020 & also there are a bunch of shorts trapped from April 2018 timeframe that would love an exit. Till price action reaches those zones, DXY is heading lower!
What this means?
USDXXX pairs to move lower
XXXUSD pairs to move higher
Equity to head higher
Another reason DXY could head lower is if more stimulus gets announced for the US economy.
I'll add more evidence from other forex pairs about why I think this move could be verified.
PS : Another way DXY could move is in a consolidation - as below the current price, we have unidirectional price movement from Apr 2018 timeframe - which could counteract lower movement.
Comment:
GBPUSD (W) is negatively correlated with DXY. It seems like its headed higher, to collect liquidity as shown -
Comment:
EURUSD (W) is negatively correlated to DXY - and it's constantly trapping shorts and heading higher to give an exit to longs trapped on the weekly chart -
Comment:
USSGD (W) is highly positively correlated to DXY and it seems like it's headed lower to collect liquidity and also to give an exit to trapped shorts!
Comment:
USDCHF is positively correlated to DXY and it also seems like it's heading down -
