DXY mid to long term analysis
Long term I am Bearish on DXY, with De-Dollarization happening in the world especially BRICS countries preparing to create a new currency to use for trade amongst them and 24 other nations joining them. So, we will see the dollar lose its value over the next few years.
But in the short to midterm (Few Months to a year) I am seeing a nice bottom form for DXY.
I have drawn two rounded curves in purple where I see rounded double bottom formations which in my experience are immensely powerful Market structure for explosive move to the upside a move to 109 is expected because of this structure.
I have also drawn two smaller Rounded bottoms in yellow and Red which I see playing out to the upside in the short-term A move to 104 is expected if these structures continue to develop.
PA is also reacting to the PRZ 1.414 of butterfly, if DXY comes down to play the red rounded bottom, we can see a strong move up from 1.618 extension of the butterfly as a Type 2 return on the harmonic.
We also have the 3 key EMAs (13 21 and 34) on daily start to curve to the upside, these are initial signs of Trend reversal. Right now, PA is above 21 and 13, but below 34, As long as 34 EMA is not broken through on Daily Time Frame 21 and 13 EMA act as weak support and 34 EMA will continue to act as resistance, and we will be in a down trend. Once the 34 EMA is claimed on Daily and held for few days, we get a confirmation for the uptrend and then 21 and 13 EMA will start to act as strong support along with 34 EMA.
With FOMC coming up, if the news is favorable for Dollar, we can break thorough 34 EMA and confirm the trend reversal.
I have over 6 years of trading and investing experience and have learned a lot in this time. I like to share what I have learned and if you like my content and would like to learn from my experience hit like and follow me for getting notified on my trade, market projections and several upcoming tutorials on technical analysis and several technical Indicators. you can also leave a comment and let me know if you want me to analyze any specific asset or want to learn about any specific topic in the world of Technical Analysis. I Will do my best to create a post for it.
Keep learning and Happy trading All.
But in the short to midterm (Few Months to a year) I am seeing a nice bottom form for DXY.
I have drawn two rounded curves in purple where I see rounded double bottom formations which in my experience are immensely powerful Market structure for explosive move to the upside a move to 109 is expected because of this structure.
I have also drawn two smaller Rounded bottoms in yellow and Red which I see playing out to the upside in the short-term A move to 104 is expected if these structures continue to develop.
PA is also reacting to the PRZ 1.414 of butterfly, if DXY comes down to play the red rounded bottom, we can see a strong move up from 1.618 extension of the butterfly as a Type 2 return on the harmonic.
We also have the 3 key EMAs (13 21 and 34) on daily start to curve to the upside, these are initial signs of Trend reversal. Right now, PA is above 21 and 13, but below 34, As long as 34 EMA is not broken through on Daily Time Frame 21 and 13 EMA act as weak support and 34 EMA will continue to act as resistance, and we will be in a down trend. Once the 34 EMA is claimed on Daily and held for few days, we get a confirmation for the uptrend and then 21 and 13 EMA will start to act as strong support along with 34 EMA.
With FOMC coming up, if the news is favorable for Dollar, we can break thorough 34 EMA and confirm the trend reversal.
I have over 6 years of trading and investing experience and have learned a lot in this time. I like to share what I have learned and if you like my content and would like to learn from my experience hit like and follow me for getting notified on my trade, market projections and several upcoming tutorials on technical analysis and several technical Indicators. you can also leave a comment and let me know if you want me to analyze any specific asset or want to learn about any specific topic in the world of Technical Analysis. I Will do my best to create a post for it.
Keep learning and Happy trading All.
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