DXY: Big moves ahead next week! But where?
The markets are accumulating orders, we are stucked in a consolidation range since the beginning January. HUUUGE opportunity is ahead! Big moves! Let's see how can we catch that!
This weeks price action could give us the direction.
Let's summarize what are we seeing here. Two weekly fair value gaps. The older/upper one was stabbed many times, holding price in a tight rage. The lower one is what we need right now. That gap is really important! The reaction from that can indicate bigger future moves. But where?
I've got some scenarios in my head bois and girls. I'm overall bearish on DXY, but not married to that at all. So I'll anticipate long setups on foreigns in the coming week. In that sense I would like to see DXY smash through the weekly fvg down, with a close below it, at the end of the week. That is the ideal scenario I would want to see in the first place. Ultimately targeting the monthly lows. But we should always be neutral right?
Important levels to watch for!
The level I've outlined is the top of the weekly gap. This is an overall magnet to the price. So the move to it is highly highly possible! This week should be an expansion. The where will be clear when price prints the structure around the gap. If we stab into the gap and see immediate reaction to the upside, creating bullish structure, forming bullish gaps, than the bearish scenario should be invalid. This reaction can happen with a small sting or a deeper move below the dashed line too. You should be really careful around there, that's really a 50-50% area. Wait for conformation on the lower timeframe.
The bearish scenario is when price continues to print gaps downwards, making lower lows, and small retracements to the upside. In other words, it won't just sweep the lows. Rather it will close below them.
The direction will be clear once we react from the gap.
The ultimate conformation will be the next weekly candle close. But in the meantime, lower timeframes can give us the hints to hop on trades. I'll keep you updated. Be safe!
Ohhh! Monday is Bank holiday so you should sit on your ass and do not fomo into anything. It's an order !!! Haha Ok byyyyy
This weeks price action could give us the direction.
Let's summarize what are we seeing here. Two weekly fair value gaps. The older/upper one was stabbed many times, holding price in a tight rage. The lower one is what we need right now. That gap is really important! The reaction from that can indicate bigger future moves. But where?
I've got some scenarios in my head bois and girls. I'm overall bearish on DXY, but not married to that at all. So I'll anticipate long setups on foreigns in the coming week. In that sense I would like to see DXY smash through the weekly fvg down, with a close below it, at the end of the week. That is the ideal scenario I would want to see in the first place. Ultimately targeting the monthly lows. But we should always be neutral right?
Important levels to watch for!
The level I've outlined is the top of the weekly gap. This is an overall magnet to the price. So the move to it is highly highly possible! This week should be an expansion. The where will be clear when price prints the structure around the gap. If we stab into the gap and see immediate reaction to the upside, creating bullish structure, forming bullish gaps, than the bearish scenario should be invalid. This reaction can happen with a small sting or a deeper move below the dashed line too. You should be really careful around there, that's really a 50-50% area. Wait for conformation on the lower timeframe.
The bearish scenario is when price continues to print gaps downwards, making lower lows, and small retracements to the upside. In other words, it won't just sweep the lows. Rather it will close below them.
The direction will be clear once we react from the gap.
The ultimate conformation will be the next weekly candle close. But in the meantime, lower timeframes can give us the hints to hop on trades. I'll keep you updated. Be safe!
Ohhh! Monday is Bank holiday so you should sit on your ass and do not fomo into anything. It's an order !!! Haha Ok byyyyy
Order cancelled:
Price never went for the gap outlined. At least the direction is clear now. I'm targeting the highs at 104.263 now.