Dollar Index - Overview on Weekly Timeframe
As the price on the U.S. Dollar Index
DXY
is approaching the 50.0 retracement of the last big corrective movement to the upside, which came in the form of a zig zag pattern lasting several years, many factors indicate that the 5 wave sequence trough which the correction has developed, ended within the last C wave of said zig zag pattern, from which the main downside trend, on the monthly timeframe, seems to have therefore resumed.
Having said that, and if we are right about our analysis, chances are that this last impulsive movement to the downside on the weekly timeframe which would be wave 1 of the trend resumed pattern, and is shaping up as i-v wave sequence, is coming to an end around the 88.4 level and should now, or soon, start correcting. Even if we were wrong about the analysis above and the zig zag pattern is still incomplete, in any case we would be in an expanding flat for more upside, so we are still looking for upside, one way or the other. From a trading perspective, therefore, from this moment on we will be looking for buy setups, on DXY.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
DXY
is approaching the 50.0 retracement of the last big corrective movement to the upside, which came in the form of a zig zag pattern lasting several years, many factors indicate that the 5 wave sequence trough which the correction has developed, ended within the last C wave of said zig zag pattern, from which the main downside trend, on the monthly timeframe, seems to have therefore resumed. Having said that, and if we are right about our analysis, chances are that this last impulsive movement to the downside on the weekly timeframe which would be wave 1 of the trend resumed pattern, and is shaping up as i-v wave sequence, is coming to an end around the 88.4 level and should now, or soon, start correcting. Even if we were wrong about the analysis above and the zig zag pattern is still incomplete, in any case we would be in an expanding flat for more upside, so we are still looking for upside, one way or the other. From a trading perspective, therefore, from this moment on we will be looking for buy setups, on DXY.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
Comment:
As mentioned above, we can start looking for trade setups on the this index. For a conservative approach, wait for a first impulse to the upside, wait for a small correction of said impulse on the 60min timeframe to the downside, and buy the break of said correction with a stop loss below it:
