DXY 4H – Bullish Reversal Setup from FVG Zone | Target 98.63Technical Analysis
Downtrend Channel (Bearish Structure)
Price has been moving inside a descending channel (highlighted in red).
Recently, it touched the lower boundary and formed a rounded bottom pattern (possible reversal signal).
Trendline Breakout
A short-term downtrend line has been broken to the upside.
This suggests momentum is shifting from bearish to bullish.
Fair Value Gap (FVG Zone)
Price is currently testing an FVG zone around 97.00–97.28.
This zone acts as a potential entry area for long trades.
Entry, Stop Loss, and Target
Entry Point: 97.28 – 97.27
Stop Loss: 96.90 (below FVG zone support)
Target Point: 98.63
Risk–Reward Ratio: Approximately 1:3 → good setup.
Potential Scenario
If price holds above the FVG zone and doesn’t break below 96.90, we may see a bullish move toward 98.63.
But if the FVG fails and price closes below 96.90, it could resume the downtrend.
✅ Summary:
Market structure shows a possible bullish reversal after a prolonged downtrend.
A clean long setup is planned: Buy near 97.27 → Stop 96.90 → Target 98.63.
Confirmation needed: Strong bullish candle closing above the FVG zone
