DXY currently trading at a sensitive level(101.993-102.335). If the zone could support price, DXY might rally/correct to 103.382 level. But I still hold a bearish sentiment and expect this to happen after a pullback to my sell zone A.
I will trend carefully and watch fundamentals in the coming week.
Market structure showed a shift lower twice, and indication of downtrend continuation. Daily chart printed multiple rejection followed by thursday bearish engulfing candle. I anticipate price trade to or below the 50% level of the uptrend price range before buliishness resumes or we see downtrend continuation.
I would like to see a pullback to my entry A or B....
I expect USDCAD to trade below April low which might be seen as a breakout but I anticipated a fakeout. A sharp reversal from the point makes this more valid. Then a run in USD. This is should be supported by fundamentals and chart pattern.
Tuesday printed a rejection pattern while Wednesday printed an engulfing candle that encamped last week market activities. Details in chart. Entries at either 25 or 50 percent retracement levels.
The chart is self explanatory.
Price might trade lower to sweep sell side liquidity and probably fill the imbalances below. Thereby trading to July 1st high.
Look out for price action that might support this.
