Mahtab_Tradia

DXY Key Levels to Watch

TVC:DXY   U.S. Dollar Currency Index
In the higher time frames (Daily & Weekly) there is an uptrend with bullish candles and we saw the US Dollar got strengthened for several weeks.

Currently, price is above the last week’s and last month’s highs but it couldn’t close above the yesterday’s high (93.170) yet.
There is a strong resistance level at 93.200 which has pushed the price to the downside twice.

Moreover, MACD shows a negative regular divergence.

Bullish Scenario:
If price closes above 93.170 (Daily High), I expect more rise in price to 93.400 which is a resistance level .

Bearish Scenario:
On the other hand, in 1H time frame, a reversal double top pattern is being created and if the neckline broken out and price closes below it, we can expect a fall in price around the weekly and daily levels (92.800 - 92.740) and in the case of the downside breakout on those levels, there would be more fall which can be around 92.500 (Monthly High).

Note: Daily levels are very important to us and we should always keep an eye on them to see what’s the price reaction after touching them.

I’m on the bearish side for DXY . What about you?
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Comments

I think DXY will remain bullish through Sept as the US job market will continue to add workers to the workforce as the extended unemployment comes to an end and I cannot see them extending this any further. The question will then remain what happens after Sept...I personally think we will see job losses over the late fall/winter timeframe throughout the global economy as those that are fearful of Covid will not travel & will not be purchasing much goods other than essentials (esp those over 65 whom are not as fearful right now). I think we see a small period of deflation as the supply side catches up and possibly becomes over supplied in areas before we see sustained inflation. In the very long term I think the dollar will suffer.
+1 Reply
Perfect
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good break down :) thx for your view
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need more setups just like this
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Nice setup
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Very Possible Scenario 🔥
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Nice pattern
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Nice and clear creation
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