DXY: Bull Market is Approaching an Important Resistance Level
The recent US interest rate hike and an “unexpected” dovish statement given by the ECB during the EU interest rate decision this month provided further bullish momentum for the DXY . However, no key levels are actually broken at the moment and DXY is still moving well within the yearly channel between the level of 89~90 and 102.50~104. DXY is currently approaching the yearly resistance level of 104.00. This is a key level to watch as it is the high back in 2017.
For buy opportunities, we are waiting for some kind of a pullback first before entering buy positions. Also, a clear breakout of 104 level would also give us the green light to capture pullback at 104 level, but this is a risky buy setup as we do not want to get our positions stucked if a period of correction occurs.
For sell opportunities, we are not currently looking for any sell entries because there are simply no bearish patterns being formed. We will consider sell entries once the market creates a lower low first. But we cannot foresee that yet in the near future.
For buy opportunities, we are waiting for some kind of a pullback first before entering buy positions. Also, a clear breakout of 104 level would also give us the green light to capture pullback at 104 level, but this is a risky buy setup as we do not want to get our positions stucked if a period of correction occurs.
For sell opportunities, we are not currently looking for any sell entries because there are simply no bearish patterns being formed. We will consider sell entries once the market creates a lower low first. But we cannot foresee that yet in the near future.