US Dollar Index 1D - Potential New Break, After False Break

After breaking down a few longer-term trading opportunities on the $EURUSD this morning we decided to take a look at the DXY thinking the conditions would be very similar (just inverse) but perhaps offer a better opportunity than the EURO... and indeed it did.

After a very slight false breakout at the bottom of your screen, price proceeded to take out the highs of the most recent retracement and after a slight pullback, we are now retesting our most recent highs. If we can get a violation of this level my expectation is that we may see move up to the $99 level. That extension would also be of equal length to the previous extension.

There is a sneaky inside level of structure that exists around $99.50's which may be worth keeping an eye on as well.

*I don't use the Dollar Index to look for correlations or anything like that due to the fact that I think it's pointless from a trading perspective. But seeing how the index is 57% weighted with the Euro it will often give similar setups to the EURUSD.

I hope you guys enjoyed the analysis! Please LIKE this post if you do and leave a comment if you have any questions or would like to share your view on this setup or perhaps another that you are tracking.

Akil