DXY Solid trade set-ups on break-outs.

The U.S. Dollar Index (DXY) is on the 3rd straight green 1D candle, a rather strong rise that is about to test the 105.805 Resistance. A closing about could be a confirmed buy signal with the 1.236 Fibonacci extension as a Target (106.900) as this was the target on previous similar set-ups.

However, the price action since the May 13 High resembles an Inverse Head and Shoulders (IH&S) pattern on a bullish trend and technically those are seen on tops. A low risk sell trade would be upon a 1D close below the 1D MA50 (blue trend-line), which has been holding since February 23, aimed at the 1D MA100 (green trend-line). Similarly a candle close below the 1D MA100, targets the 1D MA200 (orange trend-line).

Notice the Fibonacci levels involved for additional Support/ Resistance pressure. Also the 1D RSI offers a Higher Lows trend-lines for ideal buy entries.




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