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DXY (USD Index) Daily Analysis August 9th, 2020

Short
TVC:DXY   U.S. Dollar Index
DXY Short Idea

DXY is bearish on all significant timeframes and we will continue with this trend until we see a major transition.

We have two potential scenarios for short opportunities:

1.Bearish momentum continues without forming structure. This is likely given recent fundamental factors. Look for a bearish break of this 4hour range between 93.90 & 92.60 with a confirmed lower high. Look to target toward the -27 fib level.

2.We see price action pullback to the 38.2% fib level and form structure. Look for bearish setups to confirm a reversal at that level. Target lower toward the -27% fib level.

For us to consider long opportunities we need to see a break of our monthly resistance zone around 95.00. Look for a higher low above 95.00 to confirm the transition & change of trend.

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