Kumowizard

DXY - Mixed on multi time frames. Short term paue or pull back

INDEX:DXY   U.S. Dollar Index
161 5 5
Last sell USD idea worked very well. The correction send Price down to important supp/res zone. Now we have kind of mixed picture.

Weekly:
- Ichimoku setup is still long term bullish , but the momentum lost a lot of its power. Price is trading between Tenkan Sen and Kijun Sen now. First important support is ard 94,00 (Kijun Sen +/-)
- Heikin Ashi candle had a long red body last week and a long wick with its low almost touching 94,00. haDelta/SMA3 reached an extreme low read. This means the selling pressure was really heavy. This week has just started, but given the low of last week I think there is a chance we will see some ease in selling pressure in coming days. Watch haDelta/SMA3 if it can hold the cross up and get close to zero line.
- From here it is a bit hard to tell wether we'll see range trading between Tenkan and Kijun with increased volatility, with short term bullish resumption, or if the correction will accelerate further. I think the first has slightly bigger chance and that 94,00 support should hold well for now.

Daily:
- One could say the Ichimoku picture has changed to bearish , but you must not forget something: for a bearish reversal, and valid bearish Kumo breakout Price must make a lower low below the previous important supp/ress, which is ard 93,90. Until then we can call the Ichimoku picture bearish biased, but not yet confirmed bearish trending.
- Please note also that Chikou Span is facing a massive resistance with a thick past Kumo below it.
- Heikin Ashi candle and its quantification haDelta/SMA3 has already gave an aóearly signal last friday about a possible pause or reversal of the short term bearish move. Today we may have a confirming candle: if it closes green or doji, then most likely we'll see more buying in coming days, and Price to retest 96,50-97,00 area again.

All together I think we'll see a reaction buying now to retest the daily Kumo and the shorter averages (Tenkan and Kijun). What will hapen later I don't know, and I don't even want to predict... as no one is able to predict, just to guess. But as usual, we'll have to watch price action and Heikin Ashi signals at the important supp/res levels, so ard 96,50-97,00.
I opened small long DXY             position this morning, with 1:2 possible risk reward entry, initial tgt             96,65.
Mirandole
2 years ago
Hi Kumo !


I share the same idea as you. DXY may do a nice pull back after its last week correction. Moreover we have a strong bullish divergence on 1D timeframe MACD.

My view on it :

snapshot



Best Regards,
Serge
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Kumowizard PRO Mirandole
2 years ago
Just like Ichimoku, you MA 26/48 cross has relevant information. That is: 97,00 will likely act as strong supp/res in the future. That's why I placed my retracement tgt as 96,50-97,00. Price is oversold in the possible short term falling wedge formation, let's see if the wedge breaks in next coming days.
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Kumowizard PRO Mirandole
2 years ago
As you see the pull back happened only up to the bottom of the Kumo and appr. to your wedge upper line.
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Mirandole Kumowizard
2 years ago
I got a bullish biais on US Dollar but I have changed my mind waiting for a signal to trade.
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Kumowizard PRO Mirandole
2 years ago
Yeah. If you check my previous posts, I have lost my bullish bias a few weeks ago already. It was obvious in time that USD had started a wide range consolidation, and now it looks to end up in a counter trend. I mean a bullish counter trend on the daily vs the still bearish weekly setup.
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