Here's a quick analysis of the bullish setup shown:
Key Observations:
1. Bullish Wedge Pattern:
We've correctly identified a bullish wedge, which is typically a reversal or continuation pattern signaling upward momentum after a period of consolidation.
The wedge appears to have formed over a few days, showing tightening price action with higher lows.
2. Breakout Forecast:
The projected black arrows suggest a breakout to the upside, which aligns with the wedge's bullish implications.
The path shows a short pullback or retest before rallying further — a very realistic and strategic breakout expectation.
3. Support Levels:
The upward trendline (starting from around June 7) is acting as dynamic support.
The 98.80–99.00 zone seems to be a base for the recent price action.
4. Target Zones:
The potential breakout targets are pointing toward the 100.400–101.800 levels, which would align with prior resistance areas visible from earlier in the chart.
Potential Trade Setup:
Entry: On breakout or retest of the wedge resistance (near 99.20–99.30).
Stop Loss: Below the wedge support (~98.80).
Targets: Initial at 100.40, extended to 101.80.
Final Note:
This setup favors bullish continuation, especially if the DXY holds above 99.00 and breaks with volume. Keep an eye on macroeconomic factors and upcoming USD-related news (like Fed commentary or CPI data), as they can trigger or invalidate the move.
Would you like help with placing Fibonacci levels, risk/reward calculations, or confluence areas?
Key Observations:
1. Bullish Wedge Pattern:
We've correctly identified a bullish wedge, which is typically a reversal or continuation pattern signaling upward momentum after a period of consolidation.
The wedge appears to have formed over a few days, showing tightening price action with higher lows.
2. Breakout Forecast:
The projected black arrows suggest a breakout to the upside, which aligns with the wedge's bullish implications.
The path shows a short pullback or retest before rallying further — a very realistic and strategic breakout expectation.
3. Support Levels:
The upward trendline (starting from around June 7) is acting as dynamic support.
The 98.80–99.00 zone seems to be a base for the recent price action.
4. Target Zones:
The potential breakout targets are pointing toward the 100.400–101.800 levels, which would align with prior resistance areas visible from earlier in the chart.
Potential Trade Setup:
Entry: On breakout or retest of the wedge resistance (near 99.20–99.30).
Stop Loss: Below the wedge support (~98.80).
Targets: Initial at 100.40, extended to 101.80.
Final Note:
This setup favors bullish continuation, especially if the DXY holds above 99.00 and breaks with volume. Keep an eye on macroeconomic factors and upcoming USD-related news (like Fed commentary or CPI data), as they can trigger or invalidate the move.
Would you like help with placing Fibonacci levels, risk/reward calculations, or confluence areas?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.