makuchaku

DXY (Dollar Index) Long term movement prediction for 2021

ICEUS:DX1!   U.S. Dollar Index Futures
DXY / DX1! / USDOLLAR / Dollar Index is searching for liquidity, bouncing up and down in the process.
This is my long term prediction on how it could move - given no major economic shifts.

Option 1
  • DXY breaks below the Q1 2018 lows, collects liquidity
  • It then runs up to fill in the fair value gap from Q3 2020
  • It then falls down and get rejected from Q3 2014 lows as those trapped shorts exit - creating a rally
  • It then falls down again below Q3 2014 lows to collect liquidity
  • Heads back up again in search of liquidity

Option 2
  • DXY creates a short term low just before Q1 2018 liquidity run, so that it can trap even more traders
  • It then runs up to fill in the fair value gap from Q3 2020
  • It then falls down, collects the liquidity below Q1 2018 lows
  • Get rejected from Q3 2014 lows as those trapped shorts exit - creating a rally
  • It then falls down again below Q3 2014 lows to collect liquidity
  • Heads back up again in search of liquidity

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