I have been following the Dollar Index for quite some time now and been comparing it to gold to try and find patterns and setups for other USD pairs via gold and DXY. Gold specifically has followed the exact same ABCD patterns shown in the pictures below. The exact same.
I am bullish on the dollar and I see it going up to a previous supply zone where it caught alot of sellers as seen in the picture.
These are my past results:
DXY Week 1 (ABCD finished - Huge drop is expected):
DXY Week 1: (Found support right on the 0.618 fib level)
After these moves had played out I started drawing a new ABCD pattern with both D and C as unknowns. My assumption was that the DXY would move up to retest the Trendline and then later fall to either one of my lines in the pictures. The first line is strong structure but the 2nd line is a significant reversal zone where The Dollar gained strenght after being bearish for a long time, these are the results:
DXY Week 2: (Continuation of the first pictures, DXY found resistance at 0.618 fib and a new ABCD pattern is discovered)
DXY Week 2: (ABCD pattern is fully completed and is now located in the green zone shown in the main picture)
As I mentioned earlier, I am bullish on the dollar. But! It has room to the downside as this zone is large (green zone shown in the first picture)
I hope this analysis brought some insight and ideas to your future trades.
Happy Trading!
I am bullish on the dollar and I see it going up to a previous supply zone where it caught alot of sellers as seen in the picture.
These are my past results:
DXY Week 1 (ABCD finished - Huge drop is expected):
DXY Week 1: (Found support right on the 0.618 fib level)
After these moves had played out I started drawing a new ABCD pattern with both D and C as unknowns. My assumption was that the DXY would move up to retest the Trendline and then later fall to either one of my lines in the pictures. The first line is strong structure but the 2nd line is a significant reversal zone where The Dollar gained strenght after being bearish for a long time, these are the results:
DXY Week 2: (Continuation of the first pictures, DXY found resistance at 0.618 fib and a new ABCD pattern is discovered)
DXY Week 2: (ABCD pattern is fully completed and is now located in the green zone shown in the main picture)
As I mentioned earlier, I am bullish on the dollar. But! It has room to the downside as this zone is large (green zone shown in the first picture)
I hope this analysis brought some insight and ideas to your future trades.
Happy Trading!
Comment:
Update: Both DXY & EU is playing out perfectly. Here's an update on EU from the picture above.
EURUSD
DXY