DXY long term possibilities
Updated
Sorry for the delay. I published this privately last week by accident.
The DXY0.14% is at an important crossroads. Let the price action do the talking.
It appears there may be a regular flat in the making. If so price should reverse near (+/-) 5% of the swing low. My experience says if price reverses it has about a 70% chance of testing the swing high. So I will put my primary target just below with a healthy 4:1 return. If it breaks this mark I will expect a rally to the .618. As I am trying to catch a falling knife, I will put my entry above current price at 93.470. If price action continues through my entry zone I will remove the trade and reassess.
The flip side of this coin will be a larger correction to the .500 - .618. There are some strong areas offering support.
This chart is just my interpretation of a number of factors. Please do your own due diligence and apply your own rules and style. Happy trading.
The DXY0.14% is at an important crossroads. Let the price action do the talking.
It appears there may be a regular flat in the making. If so price should reverse near (+/-) 5% of the swing low. My experience says if price reverses it has about a 70% chance of testing the swing high. So I will put my primary target just below with a healthy 4:1 return. If it breaks this mark I will expect a rally to the .618. As I am trying to catch a falling knife, I will put my entry above current price at 93.470. If price action continues through my entry zone I will remove the trade and reassess.
The flip side of this coin will be a larger correction to the .500 - .618. There are some strong areas offering support.
This chart is just my interpretation of a number of factors. Please do your own due diligence and apply your own rules and style. Happy trading.
Trade active
The trade is active but we had a deep penetration into my support zone. I move my stop to break even now and if price retests the zone reassess on lower time frames.Note
I am still long term bullish but we are seeing some slow down of momentum. Look at lower time frames for direction. Depending on your strategy you may wish to take some profit and leave some on the table. Perhaps pull it all off and look for a LTF re-entry. This is a long term hold and if you moved your stop to above entry you are playing with the casinos money. Get educated develop a trade plan and use other ideas to validate yours.
This is not a trade idea but rather how I see things. Be responsible for your own trades.
"Know your limits trade within it"
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