I said in my previous analysis that DXY can reversed down or goes up to bull channel line.
Bulls pushed price up to the channel line. Also we can see a climatic bar that is sign of exhaustion. Usually we have 2 legged pullbacks after these climatic moves.
Another bull channel is clear on daily chart. We see a channel line price overshoot that is another sign...
This analysis is on weekly and daily chart of DXY before Wednesday FOMC.
I think index is so over bought and needs some correction.
Needs correction but don’t lose your sight on overall trend.
Strong bull trends, bulls will buy first trend line break, any pullbacks.
Bulls were strong enough to break the first bearish TL on July 19, 2022.
They pushed price up to the next major bearish TL and then reversed down from there.
Daily prior high and low are marked up. Now this indicate is near the prior low so we have to see what will happen tomorrow.
Bulls will try to create HL and then go up and test the TL. Bears also try to...
I mark up NASDAQ weekly cycle below:
Breakout phase started in March 2020 and after first pullback, NASDAQ started its movement within bull channel.
Recently it broke its channel from downside with strong bear candle closed near its low and no lower tail. Also the close of this candle is below prior major low. Altogether tells us that we are not longer in bull...
I was waiting for buy setup to get long at bottom of trading range but NASDAQ break the TR from bottom.
A 3 pushes down as a wedge is clear on daily timeframe so if price wants fall more,
it needs to retraces back to the trading range and then continue to move down.
So I expect NASDAQ to moves up and then continue falling down.
**This is not an investment...
Best strategy in trading range phase is to buy at bottom and sell at top of the range.
US100 is now at 1/4 bottom of trading range and you have to look for buy setups. ( Small Unclear Wedge )
Also remember that 80% of trading range breakout attempts fail. No matter how strong bears pushed price down.
After retracement got stopped at the key level + Fibonacci level,
bulls enter the market and broke the trendline.
If price retraces more and tests lower prices,
I will get long and expect 16771.1 to be tested by bulls.
**This is not an investment advice. Your capital might be at risk.**
Give me your idea on comments...
Good Luck...
