DXY - Trading The Pullback Part II (Potential Bullish Cypher)
Earlier this week I posted some analysis on the US Dollar Index and I wanted to update you guys on what I'm seeing. We've had a nice initial reaction at our previous level of structure support (the previous breakout) and now it looks as if the market may be putting in a secondary test.
If you're looking for a reason for entry on this potential secondary test I would keep an eye out for 2 potential setups.
1 - A potential Bullish Cypher completion on the 4 hour timeframe
2- A potential double bottom on the daily timeframe
These would be the next available opportunities to enter long with minimum risk at the top of our reversal zone.
Akil
P.S. As a heads up we have the Jackson Hole speech today at 10am which may have an effect on this trade.
If you're looking for a reason for entry on this potential secondary test I would keep an eye out for 2 potential setups.
1 - A potential Bullish Cypher completion on the 4 hour timeframe
2- A potential double bottom on the daily timeframe
These would be the next available opportunities to enter long with minimum risk at the top of our reversal zone.
Akil
P.S. As a heads up we have the Jackson Hole speech today at 10am which may have an effect on this trade.
Comment:
There were a few questions below about an update of the analysis. The cypher went on to hit 1st profit targets but there was no follow through as far as a continued move higher. Now that we have violated the lows, I would keep my eyes open for the next buying opportunity if we get a signal within the bigger reversal zone as discussed in the original post (see link below)
Comment:
Original post -
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