First a gap down, trapping longs
Then a gap up, trapping shorts
DXY / DX1! is certainly playing with traders.
Note : USDXXX pairs have started moving up & XXXUSD pairs down. This should give an idea of where DXY will eventually go!
Short Term Elliott Wave structure in Dollar Index (DXY) suggests the decline to 89.209 on January 6 low ended wave (3). Wave (4) bounce is currently in progress and the Index shows an incomplete 5 swing sequence from January 6 low, favoring more upside. Internal of wave (4) is unfolding as a double three WXY Elliott Wave structure. Up from wave (3) low at 89.209,...
Here are some areas on DXY / Dollar Index / DX1! which are potential areas that could trigger a reaction.
Remember, don't trade these zones by themselves - but use a lower timeframe, like Daily or 4H to find the trading opportunities.
These zones on the weekly chart are a reference to what are some primed areas based on the history played out!
after complete bearish impulse now it is looks like this chart try to complete corrective wave.
chart pattern target will be 92.300 (fib 0.618).
head and shoulders neckline & 200 EMA can be help bulls to fly higher. stop loss should be 89.800
DXY / DX1! / FX:USDOLLAR / Dollar Index is searching for liquidity, bouncing up and down in the process.
This is my long term prediction on how it could move - given no major economic shifts.
DXY breaks below the Q1 2018 lows, collects liquidity
It then runs up to fill in the fair value gap from Q3 2020
It then falls down and get rejected...
DXY showing some strength in LTF. Can reverse if trades comfortable above 90.5$. If not, will form base here in the range 90.5$ to 88.5$ for breakout or breakdown. Bearish only below 88.5$.
Also im in slightly bullish bias for this reason.
The US Dollar Index (USDX, DXY) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of US trade partners' currencies.