Alright, so this one is a bit tricky. We are inside of a weekly bullish channel
, but just broke a daily bullish channel
inside of the weekly one. Most people call this a progressive trend break. As of right now, price has broken downward and closed with a massive Maribozu (idk if i'm spelling that right) candle. The DXY
has been struggling for well over 30 days in this region and made four attempts to break the inner weekly resistance (blue line) but it seems to be to strong.
Nothing is set in stone though, especially with good ole USD. I'm looking for the DXY
to complete a bearish 5-0
pattern on a 4HR chart. If we complete the pattern and have a good confirmation of a bearish
sentiment, the next targets in my opinion for DXY
will be the light blue regions I have drawn below.
I really think we could make it to target #2. It is a bit more aggressive but I do have faith.
As always, these are ideas. No one has a crystal ball when it comes to trading.