It is crucial that before we start analyzing currencies that involve USD, we begin with the analysis of DXY or the Dollar Index.|
If we go back 3 months, the Dollar Index has completed a DOUBLE BOTTOM.
At this point, it has currently formed a bullish Engulfing Candlestick, and in my opinion, it is re-testing this point.
In the monthly view, we are accompanied by a very bearish candlestick and also in the weekly view.
What I currently expect from DXY is:
* First, to reach the zone of 102.00 where, at this point, there is a weekly/daily support zone that needs to be re-tested.
* If at this point, DXY stays and respects it as support, then I expect an increase in DXY.
* In case 102 is not respected as support, then the next zone that DXY will reach is 100 (my preference). From this point, I would look for long positions in USD pairs.
If we go back 3 months, the Dollar Index has completed a DOUBLE BOTTOM.
At this point, it has currently formed a bullish Engulfing Candlestick, and in my opinion, it is re-testing this point.
In the monthly view, we are accompanied by a very bearish candlestick and also in the weekly view.
What I currently expect from DXY is:
* First, to reach the zone of 102.00 where, at this point, there is a weekly/daily support zone that needs to be re-tested.
* If at this point, DXY stays and respects it as support, then I expect an increase in DXY.
* In case 102 is not respected as support, then the next zone that DXY will reach is 100 (my preference). From this point, I would look for long positions in USD pairs.