While the overall trend for the dollar remains bullish, recent weeks have witnessed a notable increase in downward movement. This suggests a potential continuation of the bearish patterns, prompting me to seek pro-trend trades aligned with this recent bias. Notably, with the price already having mitigated a supply zone, an anticipated drop towards the target of 102.500 seems likely.
The formation of Wyckoff accumulation signals a possible breakdown to surpass Asian lows. Additionally, considering that the price has left a demand zone at the projected target, we can expect a potential reaction in this zone. This reaction could potentially lead to the creation of new highs and a temporary bullish trend.
Confluences for DXY Sells are as follows:
- Dollar has tapped into a 17hr supply zone that has caused a BOS to the downside.
- Theres liquidity to the downside in the form of Asian low and trendline liquidity.
- Recent trend for this market has been temporarily bearish so this is a pro trend trade.
- If price wants to continue going higher, there are unmitigated demand zones that price needs to come and fill.
P.S Although the price has established a new bearish trend, it's possible that this is a strategic move to eliminate the trendline liquidity lingering from previous bullish rallies. Given the overall bullish sentiment on the higher time frame, it wouldn't be unexpected to witness the dollar initiating a new trend to achieve fresh highs.
The formation of Wyckoff accumulation signals a possible breakdown to surpass Asian lows. Additionally, considering that the price has left a demand zone at the projected target, we can expect a potential reaction in this zone. This reaction could potentially lead to the creation of new highs and a temporary bullish trend.
Confluences for DXY Sells are as follows:
- Dollar has tapped into a 17hr supply zone that has caused a BOS to the downside.
- Theres liquidity to the downside in the form of Asian low and trendline liquidity.
- Recent trend for this market has been temporarily bearish so this is a pro trend trade.
- If price wants to continue going higher, there are unmitigated demand zones that price needs to come and fill.
P.S Although the price has established a new bearish trend, it's possible that this is a strategic move to eliminate the trendline liquidity lingering from previous bullish rallies. Given the overall bullish sentiment on the higher time frame, it wouldn't be unexpected to witness the dollar initiating a new trend to achieve fresh highs.