Weekly candle failed to make a new low. Looking for a retest back to 165.916. After which, I anticipate a double top to resume its downtrend back to down to 160. Note that I used ghost candles to show the movement of price.
4hr chart- The trendline is broken to the upside.
Major Support on 1.12100
Daily chart- Pin bar rejecting off the 20 and 50 EMA. Overall trend is bullish.
I am not going to set a TP. I will exit with a SL.
Based on my analysis, DXY will very much go up in the future.
Criteria for the reasoning:
Strong Uptrend on the Weekly
Retracement bouncing off the 50% Fib for 2 weeks
Pinbar with a long wick above the monthly support
This week, I could see the news being the deciding factor for the continuation of this bullish trend. For that reason, on the short/medium term,...
Reasons for why I am going long.
-Main trend (Weekly & Monthly) is UP.
-PA on the 4hr is a hammer(Long tail), right on top of a daily support area.
-PA on the 4hr formed on the 38.2% Fib level.
Entry- Enter on the 50% Fib of the Hammer with a tight SL. (181.173)
Exit- 185.000 or 185.500 wait for a pullback to pyramid long.