Big Moves Ahead? DXY, EUR/USD & Gold at Crucial LevelsLadies and gentlemen, there was a time when forex was full of trading opportunities... to the point where most people struggled with overtrading. But these days, you need a solid watchlist to even find positions, and that's where Skeptic Lab comes in—it's a great spot for spotting good opportunities. So without further ado, let's dive into the analysis of DXY , or the dollar index.
💲 In the daily timeframe , after the drop it had, it's entered a consolidation box, and it looks like we're nearing the end of that box. The main long trigger is a break of 100.262 from a technical standpoint, but personally, after the break of 99.850, I'm already positioned on one of the USD symbols. In lower timeframes, plus the fact that breaking the ceiling of consolidations is usually not straightforward and comes with a lot of volatility, so it's better to have a pre-breakout position.
💶Let's head over to EURX in the 4H timeframe —we've had a good reaction at the 1085.9 support. Breaking it would be a great trigger if you want a EURUSD position.
Speaking of EURUSD , it's already entered a secondary bearish trend after breaking its daily trend line. If the DXY consolidation box breaks, EURUSD will officially change its HWC trend to bearish. The position I mentioned at the start of the analysis—I opened it with the break of that same daily EURUSD trend line. The key level for profit-taking will be 1.14640. I'll wait to see what reaction DXY gives—if it fakes the box break, I'll close the position; if not, I'll leave it open for now.
🪙But let's move on to gold —the commodity I'm eyeing today for opening a position. From a technical perspective, it's at a spot that gives both short and long triggers... let me explain.
In the daily timeframe, we had a strong uptrend rally that, after reaching 4377.67 , entered its secondary corrective trend. In the 4H timeframe, what's interesting is the formation of these range boxes we're seeing. So our long and short triggers are clear: break of the box ceiling = long / break of the box floor = short.
But the thing is, the targets are the same... see, opening a short here basically means going along with the secondary trend, so? Your expectations should be relative to this leg, not the weekly one... so it's better to take your targets quicker, like 3896.31 (the 0.38 fib intersection), which could be a good target. Plus, each bearish leg is weaker than the previous one, so the point I mentioned makes sense for the target.
For longs, though, you can proceed with partial profits and not close too early. Alright, that's it. Now get outta here.
