USD Index (DXY):Multi TF shows destination 92 routed via 98.80
The multi-timeframe analysis for DXY shows the short term bounce towards 98.80 before heading lower towards 92.
Following is the step by step break down of the analysis from higher to lower TF's:
MONTHLY:
(1) Bearish due to bounce from the long term down trendline acting as resistance.
(2) The bearish divergence comes in play between the leg 3 & leg 5 of the impulsive push-up.
(3) Followed by a lower low breaking through the structural horizontal support.
(4) Bounced higher towards the falling trend line and gets rejected, thus forming a hidden bearish divergence to continue lower.
The above-mentioned facts make the probability of pushing it towards the confluence of support zone from 92.85 - 91.33
The confluence of support is derived from the multi-year rising trendline + Horizontal support & resistance structure + Fibo Extn. 61.8 at 92.11
WEEKLY + DAILY: Are under upward correction
8 HOURLY: Bounced up from the channel support after reaching 100% Fibo Extn. around 95.80
1 HOURLY:
(1) The first push-up is completed along with bearish divergence.
(2) Now it's retracing to re-test the projected up trendline (RED), from where it may bounce-up to create the second leg towards channel's high.
(3) Once, it reaches the upper boundary of the channel + horizontal resistance around 98.80, it may resume the downwards journey towards the 92-93 area.
TRADE IDEAS:
Short term- Buy the retraces until it reaches 98.80
Long-term- Selling it, once gets rejected from the channel's boundary along with a break of the rising trendline + re-test validation of the resistance.
GOOD LUCK FOR YOUR TRADES !!! PLEASE SHOW YOUR SUPPORT IF YOU LIKED THE IDEA
Following is the step by step break down of the analysis from higher to lower TF's:
MONTHLY:
(1) Bearish due to bounce from the long term down trendline acting as resistance.
(2) The bearish divergence comes in play between the leg 3 & leg 5 of the impulsive push-up.
(3) Followed by a lower low breaking through the structural horizontal support.
(4) Bounced higher towards the falling trend line and gets rejected, thus forming a hidden bearish divergence to continue lower.
The above-mentioned facts make the probability of pushing it towards the confluence of support zone from 92.85 - 91.33
The confluence of support is derived from the multi-year rising trendline + Horizontal support & resistance structure + Fibo Extn. 61.8 at 92.11
WEEKLY + DAILY: Are under upward correction
8 HOURLY: Bounced up from the channel support after reaching 100% Fibo Extn. around 95.80
1 HOURLY:
(1) The first push-up is completed along with bearish divergence.
(2) Now it's retracing to re-test the projected up trendline (RED), from where it may bounce-up to create the second leg towards channel's high.
(3) Once, it reaches the upper boundary of the channel + horizontal resistance around 98.80, it may resume the downwards journey towards the 92-93 area.
TRADE IDEAS:
Short term- Buy the retraces until it reaches 98.80
Long-term- Selling it, once gets rejected from the channel's boundary along with a break of the rising trendline + re-test validation of the resistance.
GOOD LUCK FOR YOUR TRADES !!! PLEASE SHOW YOUR SUPPORT IF YOU LIKED THE IDEA