I've seen DXY correctively retrace towards a diagonal resistance (trendline). & It is currently entering into a 2 day reversal zone.
Hypothesis:
I am looking for latent sell orders to kick in at these levels, and a final wave down will ensue. Price should trade down to a Weekly reversal area, where I have indicated by the blue arrow
Risk Management:
Trade potential 3:1 + Take off half at 1:1, and move stops to Break even. Let rest ride to Target. If you are concerned about shorting against short term bullish momentum.. you can wait for a 4hr bearish candle before entry.
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