DXY is looking good for a potential upside move. Break above the blue line is fundamentally important for this trade, as it consolidates the fact that the old resistance level may now become support.
1. We find a Gartley pattern 2. We discover the pattern lands on a long term sideways support line. 3. We discover we are in a long term broadening ascending wedge 4. We have the price correction land not only on the sideways support line, but also it lands on 38.2 percent retrace of the last impulse leg. A shallow correction such as this, usually shows the bulls eagerness to keep the upward move going with force. But we will see how this pans out over the next couple of days. 5. The stochastic has shown a strong oversold condition, Which for the DXY isn't common to see such oversold strength. (I use 12,3,3 settings on my stochastic)
Comments
moneymaking
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Whaoo tom, great analysis. Don't you think break of the 96.17 level will change sentiment to bearish on dollar? We could retest that level and then probably move further down. But for now all I see is that dollar is unable to close below 100 MA on daily time frame. This makes your analysis quite valid. I might go up to 96.17 level but we should expect to see some selling pressure there. What do you think?
TomProTrader
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My sentiment is very much that a retest to AT LEAST 96.10's is extremely likely, due to an exponential retest. I'm glad you noticed 96.17 as the pressure area, because I feel this may be too. Where I expect 1 of two things to happen
1. Bullish sentiment breaks through the 96.10's-20's zone and runs into continuation
2. We see a retest at this level, possible back onto the Support, Resistance level i've outlined, then we go on upward from there
I tend to not try and predict the future too much though. I try to look at the bigger picture.
96.17 is right by the 8 exponential average. A break above the 8EMA will give me the security of the longer term bullish trend sentiment.
I hope I was informative, whilst clear with my answer.
Regards,
Tom
TomProTrader
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May I also add. I don't think this is the "True" proper move yet, but I believe it could have a nice pop.
moneymaking
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You explanations are always informative tom. Keep it up :)