There are 2 back to back flags (Blue Bull and Red Bear) After the Wedge Bull Flag the mkt was unable to push price higher and it formed a bear flag. Note how the bear flag has the second leg (3) lower than the first and both legs are under the top. Still considerable buying pressure and little selling pressure. Actually mkt is forming a TRI. The best would be if...
DXY could be setting out a Breakut failure of the last bottom (Green Line) In a shrinking stairacase pattern. If H4 closes in a strong bull bar. However I dont like: 1 the last BO being 47p vs 46p on the second last.This is not normal. 2 recently several bear bars having gap closes. 3 This is the 1st bull bar in 6 bars. However If it works it could test the close of 6
you can sell at the mkt; use wide stop and place the TP at 114.5
This seems to be in a Trading Range now. So you should Buy Low Sell High and Scalp (See Al Brooks for more) I would sell at the red lines; and look for a test of the blue line Use common sense to adapt strategy to price action tomorrow
BULLS This is a possible LONG. Shrinking staircase pattern Found buyers below the Low1 (L1) See if a Low2 forms (L2) and if it fails. Use the Failed Lo2 to enter Long. Better if the L2 bear bar has bottom tail stop below the green line. BEARS can start selling above the red line. Scale in Higher and look for a test of the Red line
But either wait for confirmation before committing or buy and scale in and use very wide stops (1,29)
trend is strongly up and probably going to test 1.28 Longs can simply buy at the mkt and put a stop below 1.225 Or buy any pullbacks like 110p from the last top. Or buy a test of the crossed tops at 1.2430 and 1.2413 Bears can also sell and start to scale in higher but better to wait at least until the MM at 1.2578 or even higher. Stops for the bears go way...
How can you trade this? On the long side - buy any PB (on a lower TF) or simply buy at the mkt. But be ready to exit if H4 prints a strong reversal On the short side. Although may too early bears can start scaling in at 1.08 for a test of the last top and maybe more