LIQUIDITY SWEEP ON DXY BEFORE FALLING

Aug 31

In this weekend dollar index analysis presentation, my thesis is sideways liquidity sweep before a daily bear flag breakout to the downside. Momentum and RSI on the higher timeframe are still to downside suggesting more selling. Price is still trapped below all our moving averages confirming our trend bias. On the weekly time frame we have a couple of inverted candles at a fib 0.618 support zone suggesting a likely reversal from a higher low but I think these inverted candles are liquidity sweeps from the 0.382 fib retrace resistance level. The daily chart has a strong shooting star which initiated selling pressure to the current trendline support level at 97.432 where our last daily candle was a doji indecision or pause.
In the coming first trading week of September, I will be watching for clear break of the trendline on the daily chart and a confirmed breakout of the fib 0.618 support zone at 97.187 for an initial target of 96.702 and final target of 96.155.
Thank you and have a great profitable trading new month. Cheers!!

Sep 4

Trade active

DXY is still trapped in the sideways channel. The 4H divergence from the weekend made it also to the daily chart. Now as of this update on the 4H timeframe there is lower right shoulder high and I expect a move down to the lower boundary from there and possibly break it. This sideways price action can be frustrating but we will wait for it.

Sep 6

Note

TRADE IS STILL VERY ACTIVE: Made the journey to the lower boundary with a strong bearish candle. On the hourly chart briefly broke the lower boundary but could not close below. I expect a closing below lower boundary next week.

Sep 16

Trade closed: target reached

The patience paid off big time!! There is more to fall on the dollar and I will post a new video soon!