The daily chart has been showing an uptrend for the past several months, with HH's and HL's beng made. Until the last few weeks, we've seen that price hasn't been able to form a higher high on the daily, but rather a lower high and price has been wanting to fall down since then. In the 4 hour timeframe, we see signs of reversals with LLs and LHs being made. The 4 hour supply zones have been respected quite well,but so has the demand zone at 96.9 that has been holding several candles from falling further, acting as a level of support. It is also important to note that in the context of the motnhly timeframe, we are MOC, and the weekly timeframe is still an uptrend. A shorting opportunity for the DXY exists, and it would be possible to short until the 96.6 region, where a weekly demand zone is located. DXY has a lot of room to go down in both the 4hour and daily timeframes. A correction may once again happen in the daily and price could definitely go down all the way to the 96 area where we have a nice 4hr RBR which is also where price last went before going back up again. I would not long the dollar right now, but wait for it to go down to get better long opportunities.
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Daily timeframe:
