Trade Idea for U.S. Dollar Index (DXY) – Feb 19, 2025

📌 Current Market Context
DXY is trading at 107.023, slightly above the 61.8% Fibonacci retracement level (106.344).
This level is a key golden ratio support, where strong reversals often happen.
The uptrend from Sept 2024 suggests that bulls are still in control unless this retracement turns into a full reversal.
📈 Bullish Trade Idea (Buy Setup)
✅ Entry: Look for bullish price action (rejection wicks, engulfing candles, or a strong bounce) near 106.344 - 106.500.
🎯 Targets:

Target 1: 108.035 (78.6% Fib)
Target 2: 110.189 (previous high)
📍 Stop-Loss: Below 105.800 (just under 61.8% retracement to avoid stop hunts).
📊 Risk/Reward: ~1:2 or better.

📉 Bearish Trade Idea (Sell Setup)
❌ Trigger: If DXY closes below 106.344 on a daily candle, it could signal further downside.
📉 Entry: Sell below 106.200 after confirmation.
🎯 Targets:

Target 1: 105.156 (50% Fib)
Target 2: 103.968 (38.2% Fib)
📍 Stop-Loss: Above 107.000 (to avoid fakeouts).
📊 Risk/Reward: 1:2 minimum.

🛠️ Risk Management Notes
Watch for fundamental news (FOMC, inflation data, rate decisions) that could cause volatility.
Use partial take profits to secure gains along the way.
If entering a buy trade, consider trailing stops once price reaches 108.035.