DXY, Wedge Confirmed, Once Targets Reached Further Resolution!

Hello Traders Investors And Community, welcome to this analysis about the recent events happening in DXY, the current formation-structure and what we can expect from DXY the next days and weeks, there are some significant signals which I discovered and making it clearer in which direction we will trade with the overall index. As the world economy still struggling because of the corona-restrictions the virus has enabled we see meaningful levels of alternation not only in the stock-market but also in major leading currencies, as the corona-crisis established and increased we saw heavy volatility also in the DXY, for now, it seems to stabilize and consolidate but that can change in the next times when differences begin to increase between the currency-pairs, therefore we are looking at the weekly,daily and 4-hour perspective.

4-Hour Timeframe (Short-Term):

As you can see marked in blue in my chart DXY build a symmetrical wedge which recently confirmed with high volatility to the downside, for now we have the wedge target fully activated but there can also come a confirmation when the price comes back to the lower boundary as you can see in my chart before continuing to the downside, the leg to the downside can be traded aggressively with an immediate entry or conservative after confirmation. The best way in this structure is to wait after the DXY confirmed at the lower boundary of its wedge.

1-Day Timeframe (Middle-Term):

ON the daily timeframe we see some really really interesting and meaningful signs which can determine the further result of DXY, as you can see we have the local target at 96.5 which will be reached within the next time, from that point on we need to see and elevate how DXY can establish further, when we get stabilization in that level it is possible to build a reversal there and get back to previous bullishness otherwise when we fall below the target level and even lower DXY will end up in the bearish-zone you can see marked in my chart below the 94.8 level, on contrary for a bullish continuation we need to cross the falling grey trend line to the upside to end in the bullish-zone. These levels are highly important for the outcome and we need to watch out and be prepared when the time comes and either the bearish or bullish scenario plays out.

Weekly Timeframe (Long-Term):

Here we have the fundamental factors including the 4-hour and daily timeframe in the weekly timeframe which is building a huge constituitve range with a higher range boundary and coherent resistance and a lower range boundary with coherent support which needs to behold for a possible reversal and continuation, below the support level is a highly bearish zone for DXY. We have an uprising support line which you can see marked in grey, it is within the likely spectrum that we reach that line, from that level we need to confirm a stabilization in the price for a bullish outlook otherwise when DXY falls below that level it will be bearish and the next important target will be aimed at the support level at 88.7 which you see marked with the orange line in my chart.

In this manner, thank you for watching, support for more market insight, have a good time and all the best!
There are many roads to prosperity in the modern economy, but one must be contemplated.

Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: Within all three timeframe perspectives the DXY has shown up with the confirmations as mentioned to reach the final target zones.