I am under the anticipation that XXXUSD pairs are accumulating and USDXXX are distributing.
Based on the current price action of the DXY chart, I am anticipating weakness in the Dollar.
This is the setup I have based on DXY, which would have to be translated to respective Forex pairs and/or Commodities, etc.
The safest protocol at the moment is to wait for convincing displacement and structure to form before taking the trade. We have CPI and PPI at the end of the week, so I will see how price forms before that.
2 possible scenarios I will be looking for.
1.) DXY creeps up during the week until CPI to my point of interest, then that could be a good signal for this analysis to play out.
2.) DXY creeps down then pumps up during CPI, and then lingers at my point of interest before PPI, then that could also be a good confluence.
My only concern is that the DXY wants to continue rallying to take out the higher timeframe trendline liquidity and fill imbalances back at a Premium level. I would be surprised due to the increased hedging by commercials. But, anything is possible!
Yours truly,
R2F
Based on the current price action of the DXY chart, I am anticipating weakness in the Dollar.
This is the setup I have based on DXY, which would have to be translated to respective Forex pairs and/or Commodities, etc.
The safest protocol at the moment is to wait for convincing displacement and structure to form before taking the trade. We have CPI and PPI at the end of the week, so I will see how price forms before that.
2 possible scenarios I will be looking for.
1.) DXY creeps up during the week until CPI to my point of interest, then that could be a good signal for this analysis to play out.
2.) DXY creeps down then pumps up during CPI, and then lingers at my point of interest before PPI, then that could also be a good confluence.
My only concern is that the DXY wants to continue rallying to take out the higher timeframe trendline liquidity and fill imbalances back at a Premium level. I would be surprised due to the increased hedging by commercials. But, anything is possible!
Yours truly,
R2F
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