Hello, everyone. I hope you're all having a great week.
Let's analyze the DXY chart and try to make some predictions for the upcoming week.
Last week, the price was rejected from the important low indicated on the chart and also established a new 4-hour high, as evident in the chart. Consequently, the market structure in the 4-hour time frame is now in alignment with the higher time frame, daily market structure, and they both exhibit a bullish trend.
Given this scenario, our primary interest lies in taking long positions in high-probability trading zones. These zones could be around the short-term low marked with an arrow or during a pullback to the broken short-term bearish trendline.
In the meantime, as we await the price to reach these levels, we will closely monitor the market. Once the price approaches these areas, we will be looking for confirmation signals before considering our trades.
Comment
⋅
We did experience a drawdown on this trade, but here we are, with the price approaching the significant resistance level we marked on the chart.