The "short term" Long Term possible direction of DXY
The
DXY
,the last three weeks, has dropped approximately 3% pricing lower and lower. We are currently hovering above the daily Fair Value Gap ( checkpoint "1") and probably heading for the sell-side liquidity that is resting inside of it( checkpoint "2"). After that , we could assume that DXY can bounce from the checkpoints I show you before . I do not say that the DXY is changing its sentiment from bearish to bullish but I say that the retrace to the Fair Value Gap that is resting above (checkpoint "3") could be hit. There is the possibility that the retrace could reach the volume imbalance above the FVG (checkpoint "4") . From that point there are two possibilities . First, after the retrace to the checkpoint "4" DXY can price to the FVG bellow that could push price higher, as an inverse FVG. This push I think could reach the Buyside Liquidity (checkpoint "6") or maybe the FVG (checkpoint "7"). If the dollar price to those areas, only then we could think that maybe the dollar is reversing its sentiment. The second possibility is that after hitting the FVG, DXY will continue pricing lower , maybe to the the sell-side liquidity (checkpoint "5") because it is also a double bottom that traders feel safe about their stop-loss that the majority probably put under the checkpoint "5".
DXY
,the last three weeks, has dropped approximately 3% pricing lower and lower. We are currently hovering above the daily Fair Value Gap ( checkpoint "1") and probably heading for the sell-side liquidity that is resting inside of it( checkpoint "2"). After that , we could assume that DXY can bounce from the checkpoints I show you before . I do not say that the DXY is changing its sentiment from bearish to bullish but I say that the retrace to the Fair Value Gap that is resting above (checkpoint "3") could be hit. There is the possibility that the retrace could reach the volume imbalance above the FVG (checkpoint "4") . From that point there are two possibilities . First, after the retrace to the checkpoint "4" DXY can price to the FVG bellow that could push price higher, as an inverse FVG. This push I think could reach the Buyside Liquidity (checkpoint "6") or maybe the FVG (checkpoint "7"). If the dollar price to those areas, only then we could think that maybe the dollar is reversing its sentiment. The second possibility is that after hitting the FVG, DXY will continue pricing lower , maybe to the the sell-side liquidity (checkpoint "5") because it is also a double bottom that traders feel safe about their stop-loss that the majority probably put under the checkpoint "5".
Trade closed: target reached:
Happy New Year everyone. Our first target got hit now we want to see whether price goes to the volume imbalance or rejects and move lower to the sellside liquidity areas