The DXY chart shows a QML (Quasimodo Level) already confirmed through a BOS (Break of Structure). The next step is a return to the OTE (Optimal Trade Entry) zone, where the daily order block (OB) is located. On DXY, we expect a reaction to the daily OB or the 4-hour GAP, signaling further index downside and confirming long entries on EUR/USD.
Scenario for EUR/USD:
DXY reacts to the daily OB or 4-hour GAP, confirming its decline.
This confirmation supports opening long positions on EUR/USD.
Entry on EUR/USD is made at the OTE zone from the daily OB.
An additional entry point is the 4-hour FVG on EUR/USD.
Strategy:
Confirmation: Reaction to the daily OB or 4-hour GAP on DXY.
Entry: Long EUR/USD from the daily OB or 4-hour FVG.
Stop-loss: Beyond the OB boundary.
Take-profit: At the true supply level.
Using DXY’s reaction as confirmation helps minimize risks and improves entry precision.
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