Trend Analysis
The main view of this trade idea is on the 4-Hour. The Dollar Index found some support around the 91.80 price level and is consolidating in a sideways or rectangular fashion between 91.80 and 92.20. Expectations are for the Index to break above the pattern and rally towards the 92.60 zone.
Technical Indicators
The reversal in recent declines in DXY is predicated on the RSI emerging from oversold levels. Also DXY is trading above its fractal and short term (25-SMA) moving averages. The KST had a positive crossover in the midst of the rectangle pattern setup.
Recommendation
The recommendation will be to go long at market. Stop loss will be set around the 91.80 price level and a target of 92.617. This produces a risk-reward ratio of 1.80.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in DXY.
The main view of this trade idea is on the 4-Hour. The Dollar Index found some support around the 91.80 price level and is consolidating in a sideways or rectangular fashion between 91.80 and 92.20. Expectations are for the Index to break above the pattern and rally towards the 92.60 zone.
Technical Indicators
The reversal in recent declines in DXY is predicated on the RSI emerging from oversold levels. Also DXY is trading above its fractal and short term (25-SMA) moving averages. The KST had a positive crossover in the midst of the rectangle pattern setup.
Recommendation
The recommendation will be to go long at market. Stop loss will be set around the 91.80 price level and a target of 92.617. This produces a risk-reward ratio of 1.80.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in DXY.
Trade closed: target reached:
Stops should be moved to Break Even and monitor for either trend continuation or trend reversal.