Mahtab_Tradia

DXY Time to Reverse?

Short
TVC:DXY   U.S. Dollar Index
We have seen a significant growth on US Dollar Index in the past few weeks.

As you see in the 4H chart, there are two ascending trend lines on which price is bouncing.

Currently, the inner trend line (yellow one) is broken out to the downside and price is pulling back to it.

On the other hand, price has approached to the supply zone which is around (96.120 - 96.240) and got rejected from it.

Moreover, It seems like a bearish reversal double top pattern may be created.

If price closed this 4H candle below the previous candle and also fixed below the supply zone, we can expect the double top pattern creation and a drop on price first to the next support level around 95.069, and in the case of a downside breakout on this level, there is a high probability of dropping more for DXY to touch the second trend line (purple one).

Since we should always consider the other scenario, if price breaks 96.240 and closes a bullish candle above this level, it will continue growing to revisit 97.00

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