Hello, Dollar is trading in a downtrend with lower highs and lower lows on a multi year timeframe.
If we assume that we will see soon another Lower High then this would make up for a good Short setup.
I think there are massive stop buy/sell orders above recent years high´s, my thesis is that we trigger these stoplosses (stop loss hunt) before DXY tanking downward.
I´ve also drawn the price action i expect in the coming years to come, as you can see above in white.
This is more a longterm play, i guess. If you have significant ammounts of USD you may wanna change them to eur or another currency soonish according to my setup.
As always things may not work as planned so i would still have good risk management in place, as we could also make higher highs on a big frame.
But assuming the trend of lower highs/lows is intact this is definitely worth a short setup in my opinion.
DYOR and please leave a like :)
Trade active:
trade active but got less confident, we may also test this red line instead near last top
Green Curve has to break, in order for DXY to crash for real i think