TradingView
TradingShot
Jul 18, 2022 12:24 PM

DXY Peak formation on RSI and invalidation level Short

U.S. Dollar Currency IndexTVC

Description

The U.S. Dollar Index (DXY) , hit (and broke) last week the 3.5 Fibonacci extension level from the market bottom. The last time that happened while the RSI turned sideways above the 70.000 overbought level was in Q4 2014 - Q1 2015. The price then pulled-back to the 2.5 Fib level and stayed neutral until it hit the 1W MA50 (blue trend-line).

However we have to account for the possibility of the pattern following the +27% rise pattern, which gives a top around 113.500. As a result if you take such a trade it would be best to account for an invalidation level exactly on last week's High.



--------------------------------------------------------------------------------------------------------

** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **

--------------------------------------------------------------------------------------------------------
Comments
FX_Professor
I agree and see it similarly. We are getting there
intellibetscapital
RSI is headed for 112, max downside 104..cmp 106 something
JoeChampion
Well spot on mate, agreed on short term pullbacks!
Crypto-Quantum-Fox
lovely chart man. nice and simple.
More