DXY - Weekly Road To Buyside

Thursday 28th Dec 2023 was the graceful day DXY formed the higher low of 2023 and ever since, we have been on a decent rally seeing a mind shattering 3900+ ticks from lows to recent long term highs @104.604.

Friday 2nd Feb 24 is when we witnessed a run on sell stops and the following Monday confirming the bullish fair value gap in which price respected 3 times indicating that if we are to see a candle closure below 108.811, there's a strong chance for sudden decline to 102.901. 104.557 has already been swept and if the market sentiment as a whole is risk on, 104.557 might be a long-term high for the foreseeable future with 102.742 being the #2 zone of take profit from a short perspective.

In contrary to the opposing bias, although a decline in ZB1! does not necessarily mean a bullish run in DXY, I am looking for a continuation in bullish price action with 105.668 being the next draw on liquidity for the week.

What would that mean for the stock index markets and forex?

My philosophy is simple...

Fortify Michael J Huddlestone's concepts that I have studied to consistently predict where the market is more likely to go.

This includes;

- Market Structure
- Buyside/Sellside Liquidity
- Order Blocks
- Liquidity Voids
- Fair Value Gaps
- Optimal Trade Entry
- Premium/Discount Array
- SIBI/BISI
- Many More!

The strategies mentioned here are some of many that I use to implement into my analysis and over time, with consistency I aim to achieve a high degree of accuracy in the markets with the foresight and understanding to assess what went wrong when my bias is negated.

Credits;

- Michael Joe HUDDLESTONE
- Shawn Lee POWELL
- Toray KORTAN

Comment:

The short-term downtrend from last week Thursday, 8am 1-hour candle to Monday's UK AM session has ended with short-term highs being wiped out throughout the US AM session.

With 6 high impact news releasing today, the implied volatility today should aid the bullish bias

Comment:

The 6 high impact news that was released yesterday was a success in inviting volatility into the markets. As a result, daily buyside @ 104.604 has been taken with the possibility of further upside movement, not disregarding the chance of a intra-day pullback.

Comment:

105.782 is now the next draw on liquidity for this week

Comment:

If the bullish bias is to continue, I will expect the stock index, namely:
ES1! NQ1! YM1! to continue it's decline.

Comment:

Reviewing intraday price action yesterday during the US AM session, notice how the .786% fibonacci was respected before ripping 0.73% in that same hour.
OTE entries @ the .786 fib would've been granted with take profit above daily buyside located @ 104.557.