DXY has hit the bottom of the channel, apparently in my opinion, the market will respect the channel support, and we can look forward, retaining its upward trend. However, it is a risk I am happy to take, for a BUY trade.
First of all:
it's a personal, purely technical view
without taking news or economic miracles into account!
or an alien invasion...
your opinion on this is very welcome in the comments!
Part 1: way up
let's switch to a smaller time frame to see why I think it would be possible
There is still a key level from the...
DXY has bottomed out around the 89.50 level and has continued to grind higher since. The next level that we took out was the 89.90 level which now acts as support and the upward trend line and pivot area. I expect a move higher in the dxy in the coming weeks and therefore I will sell the rallies in EURUSD and AUDUSD and buy the dips in USDJPY.