On the daily time frame, we see DXY has respected the Equilibrium, instead of breaking through it, it has bounced off and turned back towards the upside.
This confirms the two scenarios, well actually three scenario cases.
First Scenario: Price is ready to run with the bulls and we see stronger pullbacks to the upside, higher highs, and higher lows back toward the premium.
This would mean the Dollar gains strength, a possible break into EQ (103.46- 102.74) before reversal back towards premium.
Second Scenario: Price is ready to drop with bears and we see a stronger push through Equilibrium, breaking 102.74 and heading towards the discount.
This would mean the Dollar would continue to weaken.
Third Scenario: Possible consolidation around (102.74-103.46) area as it is a key zone which could mean the price could hang around for a few days deciding which way to go.
This would mean the Dollar would go sideways not breaking too high or low for a few days.
Goal: Catch the trend of the dollar strength when trading the other pairs. If it's going up we are buying, If it is going down we are selling.
My Plan: If it respects equilibrium wait for a breakout to the upside, then set a pending order for a buy to the next level of interest with SL below equilibrium.
If it enters the equilibrium wait for it to touch the bottom and see if respects it, set a pending buy order at the top of the equilibrium with sl at the bottom.
if it breaks through it, set a pending sell order at the bottom of the equilibrium with sl at the top.
If it breaks the equilibrium wait for a breakout to the downside, then set a pending order for a sell to the next level of interest with sl above equilibrium.
Outlook: This could take some time to form as this is a key area for the Dollar right now. Be patient, and set alerts for the zone.
This confirms the two scenarios, well actually three scenario cases.
First Scenario: Price is ready to run with the bulls and we see stronger pullbacks to the upside, higher highs, and higher lows back toward the premium.
This would mean the Dollar gains strength, a possible break into EQ (103.46- 102.74) before reversal back towards premium.
Second Scenario: Price is ready to drop with bears and we see a stronger push through Equilibrium, breaking 102.74 and heading towards the discount.
This would mean the Dollar would continue to weaken.
Third Scenario: Possible consolidation around (102.74-103.46) area as it is a key zone which could mean the price could hang around for a few days deciding which way to go.
This would mean the Dollar would go sideways not breaking too high or low for a few days.
Goal: Catch the trend of the dollar strength when trading the other pairs. If it's going up we are buying, If it is going down we are selling.
My Plan: If it respects equilibrium wait for a breakout to the upside, then set a pending order for a buy to the next level of interest with SL below equilibrium.
If it enters the equilibrium wait for it to touch the bottom and see if respects it, set a pending buy order at the top of the equilibrium with sl at the bottom.
if it breaks through it, set a pending sell order at the bottom of the equilibrium with sl at the top.
If it breaks the equilibrium wait for a breakout to the downside, then set a pending order for a sell to the next level of interest with sl above equilibrium.
Outlook: This could take some time to form as this is a key area for the Dollar right now. Be patient, and set alerts for the zone.