DXY Multi-TF Analysis
This first chart shows DXY, the Major macro leg it's created over the past 18 months or so, and the Premium (Red boxes) and Discount (Green boxes) ranges, along with the EQ's of said leg. As you can see, we're in an area of Discount. So any "smart money" that shorted/sold that 99-103 (Premium) Range, will now likely be accumulating Longs, in this 89-93 (Discount Range).
The Minor Macro Leg (BC), shown in Orange, is our pullback since putting in the Macro Low the beginning of this year. You'll notice, last month we swept the Mar '21 highs, and have since corrected. I anticipate continued downside, until we touch the area below the BC Leg EQ. Ultimately, we're in a Macro accumulation range, but more downside could definitely show itself on the weekly/daily timeframes. The Orange Arrow shows what I'd consider a 'perfect/ideal' Bullish setup...
Now let's take a deeper look into this BC Leg Range, and what's been happening...and what I'll be watching for moving ahead....
Zoomed in, we see the past 4 or 5 months of recent action, on the Daily. The FVG I'm anticipating a visit to is clearly marked. Note, Filling the FVG, or even hitting the FVG EQ would give us a perfect strike on nearly all legs/timeframes....A perfect accumulation spot.
In the near term, I wouldn't be surprised however, if we see a spike in DXY, as indicated by the Green Arrow. We've recently made two taps into our CD Leg EQ...rejecting both times. But we all know, that "engineers" liquidity above this level....A spike up thru, to take out stops should be watched for/anticipated.
Strength above O[2] (the orange dotted, Weekly Open, from 2 weeks ago) on the daily would pause any bearish DXY outlook I have. So far, little to no follow thru has been presented by Bulls above this level. Consequently, closes below O[1] (the orange dotted, Weekly Open, from, you guessed it!! Last week) would have me anticipating lower DXY, and Yellow Arrow (macro) thesis playing out as anticipated.
The markets are pricing in Inflation, Higher Inflation, Hyper Inflation, etc.....rates are ridiculously low....the spigots are open....Easy Money everywhere.... A strong Dollar jeopardizes this.
As always, good luck, have fun, and practice solid risk management!
The Minor Macro Leg (BC), shown in Orange, is our pullback since putting in the Macro Low the beginning of this year. You'll notice, last month we swept the Mar '21 highs, and have since corrected. I anticipate continued downside, until we touch the area below the BC Leg EQ. Ultimately, we're in a Macro accumulation range, but more downside could definitely show itself on the weekly/daily timeframes. The Orange Arrow shows what I'd consider a 'perfect/ideal' Bullish setup...
Now let's take a deeper look into this BC Leg Range, and what's been happening...and what I'll be watching for moving ahead....
Zoomed in, we see the past 4 or 5 months of recent action, on the Daily. The FVG I'm anticipating a visit to is clearly marked. Note, Filling the FVG, or even hitting the FVG EQ would give us a perfect strike on nearly all legs/timeframes....A perfect accumulation spot.
In the near term, I wouldn't be surprised however, if we see a spike in DXY, as indicated by the Green Arrow. We've recently made two taps into our CD Leg EQ...rejecting both times. But we all know, that "engineers" liquidity above this level....A spike up thru, to take out stops should be watched for/anticipated.
Strength above O[2] (the orange dotted, Weekly Open, from 2 weeks ago) on the daily would pause any bearish DXY outlook I have. So far, little to no follow thru has been presented by Bulls above this level. Consequently, closes below O[1] (the orange dotted, Weekly Open, from, you guessed it!! Last week) would have me anticipating lower DXY, and Yellow Arrow (macro) thesis playing out as anticipated.
The markets are pricing in Inflation, Higher Inflation, Hyper Inflation, etc.....rates are ridiculously low....the spigots are open....Easy Money everywhere.... A strong Dollar jeopardizes this.
As always, good luck, have fun, and practice solid risk management!
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