Market Structure & Trendline Break
The US Dollar Index (DXY) recently broke out of its descending trendline on the 15-minute chart. This signals a potential shift from the prior downtrend into a short-term bullish phase.
After bouncing from the key support around 103.40–103.50, price is now hovering near 104.00.
Key Support & Resistance Levels
Support Zones:
103.40–103.50: Recent swing low and demand area. If price falls below this zone, it would weaken the bullish case and could lead to a retest of the 103.00 area.
102.80–103.00: Major support if the 103.40 zone fails.
Resistance Zones:
104.20–104.30: Minor resistance just above the current market price.
104.60–104.80: Next hurdle if DXY gains momentum.
A clear break above 104.80 could open the path toward 105.00 and beyond.
Trading Plan
Bullish Scenario
Entry: Consider longs on a confirmed break or retest of 104.00–104.20.
Targets:
First target around 104.60
Second target around 105.00
Stop Loss: Below 103.40, to invalidate the bullish structure.
Bearish Scenario
If price fails to break 104.20 and moves back under 103.40, watch for a retest from below to consider short positions.
Downside targets could be 103.00 or even 102.80 if the selling accelerates.
Overall Bias
The short-term momentum has shifted bullish with the trendline break and higher lows forming.
Keep an eye on major resistance levels around 104.20 and 104.60 to see if DXY can sustain its upward move.
A failure to hold above 103.40 would negate the bullish setup.
Always remember to manage your risk appropriately. Use stop losses, size your trades responsibly, and adjust targets based on market conditions.
The US Dollar Index (DXY) recently broke out of its descending trendline on the 15-minute chart. This signals a potential shift from the prior downtrend into a short-term bullish phase.
After bouncing from the key support around 103.40–103.50, price is now hovering near 104.00.
Key Support & Resistance Levels
Support Zones:
103.40–103.50: Recent swing low and demand area. If price falls below this zone, it would weaken the bullish case and could lead to a retest of the 103.00 area.
102.80–103.00: Major support if the 103.40 zone fails.
Resistance Zones:
104.20–104.30: Minor resistance just above the current market price.
104.60–104.80: Next hurdle if DXY gains momentum.
A clear break above 104.80 could open the path toward 105.00 and beyond.
Trading Plan
Bullish Scenario
Entry: Consider longs on a confirmed break or retest of 104.00–104.20.
Targets:
First target around 104.60
Second target around 105.00
Stop Loss: Below 103.40, to invalidate the bullish structure.
Bearish Scenario
If price fails to break 104.20 and moves back under 103.40, watch for a retest from below to consider short positions.
Downside targets could be 103.00 or even 102.80 if the selling accelerates.
Overall Bias
The short-term momentum has shifted bullish with the trendline break and higher lows forming.
Keep an eye on major resistance levels around 104.20 and 104.60 to see if DXY can sustain its upward move.
A failure to hold above 103.40 would negate the bullish setup.
Always remember to manage your risk appropriately. Use stop losses, size your trades responsibly, and adjust targets based on market conditions.
Related publications
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.
Related publications
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.