DXY- technical scenario to consider

INDEX:DXY   US Dollar Currency Index
397 6 7
With markets with high volatility this days almost any scenario is possible.

Im starting to consider seriously this scenario.

Price retracing to the 0.61 fib from last highs could start another decline from here to form an ABC zigzag .

We have also:

- Strong S/R
- ema 55 acting as resistance

This is not an entry, consider this when making your analysis. The same setup applies to the EURUSD             since they are negative correlated.

I am a korean, so please try to understand what I am saying. the each presidents of main bank say that it could be a strong possibility of rise of interest. I think it could give the market " dollar index" another jumping up? how do you think? chart is a only trace. you say dollar will go down side. hmmmmmmm nobody know but.. Let's see what will happen.
You expect weakness on us dollar index, then you post a chart about shorting eurusd. why?
FullTimeTrader peter.kralmail
Hello, please consider that i am not giving signals here, just posting IDEAS that other traders may consider or discard. Thats why the title is "technical scenario to consider". Right now the price is choppy and consolidating and with a very volatile market we should consider all possible scenarios. Regards.
peter.kralmail FullTimeTrader
I know but, you as a trader need to know what you are trading. And you are short on USD index but long on eurusd on usd. So that´s basically like hedgeing your trade on eurusd
More or less I have the same view, but it will be very frustrating until FOMC. It can stuck in a tight range until. Naturally the real price action will reveal only after rate decision and guidance. Of course if they don't hike, short DXY will perform very well immediately. But on the other side I think even if they hike, it can be a "Buy the rumour (has been bought for 15 months), sell the fact" scenario. The question is how highy it would initially spike after a rate hike. If it wouldn't be able to break the channel you show, so no higher high above 97,50, and you get a sell signal there, then re-enter short.

same idea, it should go down from here. Good luck!
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