(DXY) Bearish Continuation Resistance at EMA 50, Targeting 96.8

echnical analysis for the U.S. Dollar Index (DXY) on the 4-hour timeframe. Here’s a detailed analysis of the idea:


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🔍 Technical Breakdown

1. Downtrend Channel:

Price action is clearly moving within a descending channel.

Lower highs and lower lows confirm a bearish structure.


2. Resistance Zone + EMA Confluence:

Price is approaching a horizontal resistance zone near 98.70–98.75, which aligns with the 50 EMA — a dynamic resistance.

Repeated rejections from this zone are marked with red arrows, making it a strong supply area.


3. Bearish Price Projection:

If price rejects from the resistance zone again, the expected move is downward toward the support/target zone at 96.870.

The drop would mirror the previous downward legs of approximately -1.9%, showing consistency in bearish waves.


4. RSI (14):

Currently near 40.97, indicating mild bearish momentum with some room to fall before reaching oversold (30), which supports a downside move.



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📉 Forecasted Move

Short-Term Bullish Pullback: Price might touch the EMA 50 and resistance zone.

Bearish Reversal Expected: If the resistance holds, price could drop ~1.9% to retest the channel bottom / 96.870 support zone.



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🧠 Trading Idea Summary

Bias: Bearish

Entry Zone: Around 98.70–98.75 (resistance + EMA 50)

Target: 96.870

Stop-Loss: Above 99.00 (or trendline breakout)

Confirmation: Bearish candlestick pattern or RSI divergence at resistance







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📌 Title Suggestion:

U.S. Dollar Index Bearish Setup – Rejection Expected Below EMA 50, Targeting 96.87




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