Hi traders!
This is DXY REVISITED
We covered the DXY in the STATE OF THE MARKET VOL.2. At that moment, the price finally bounced of our order block and found some kind of momentum upward. That bull run had a few legs because it ran for some time before finding resistance around 95.00
Like any type of trend, the price has to retrace to become a healthy run. Uptrend channel do have 2 trend lines that it must follow in order to continue its movement. Unfortunately for DXY, the price broke the bottom trend line and went back into our order block. We had a bull trap after when the price even broke the order block only to retrace really slowly into the bottom of said order block before closing. All traders thought that the DXY just faked a move down.
....And people got caught AGAIN with their pants down! The price tricked us again to go back test 95 just to drop down again but now closing under the order block. This confirms for us that DXY may resume as early as this week its overall bigger trend that started above 100 which is FULL BEAR MODE!
Aside from that, our two favorite indicators showing us the way too. You can see that a divergence on the MACD already started. Also, this aligns us perfectly with that reversal on the RSI.
Until proven otherwise, the trend will be bearish!
Trade safe!
Disclaimer: This is my trading analysis, it is not an invite or recommendation to trade
This is DXY REVISITED
We covered the DXY in the STATE OF THE MARKET VOL.2. At that moment, the price finally bounced of our order block and found some kind of momentum upward. That bull run had a few legs because it ran for some time before finding resistance around 95.00
Like any type of trend, the price has to retrace to become a healthy run. Uptrend channel do have 2 trend lines that it must follow in order to continue its movement. Unfortunately for DXY, the price broke the bottom trend line and went back into our order block. We had a bull trap after when the price even broke the order block only to retrace really slowly into the bottom of said order block before closing. All traders thought that the DXY just faked a move down.
....And people got caught AGAIN with their pants down! The price tricked us again to go back test 95 just to drop down again but now closing under the order block. This confirms for us that DXY may resume as early as this week its overall bigger trend that started above 100 which is FULL BEAR MODE!
Aside from that, our two favorite indicators showing us the way too. You can see that a divergence on the MACD already started. Also, this aligns us perfectly with that reversal on the RSI.
Until proven otherwise, the trend will be bearish!
Trade safe!
Disclaimer: This is my trading analysis, it is not an invite or recommendation to trade
