DXY Outlook 5th Feb Close: Small retracement then larger push up
On the DXY 4hr chart, I have identified a Rally-Base-Rally (RBR) and boxed that area. I then fibbed the bullish 4hr movement and saw that the RBR was roughly at the 38% retracement fib level (i.e. the level that price retraces to when it is looking to create higher lows and higher highs) which increases the confidence of this outlook idea.
This then also corresponds with my earlier XAUUSD Short position(s) idea. The small push down on the DXY will give XAUUSD the small push up it needs to hit the key level to execute the sell. Then the DXY could reject from the RBR and 38% zone causing dollar to be bullish and Gold to be bearish. Therefore, increasing my confidence in the Gold Trades.
Overall, The Chart patterns for DXY and XAUUSD show a small push down for DXY to create a higher low, then to extend to the 27% fib zone to create a higher high. Gold will be the opposite, push up and then extend downwards towards 27% fib zone to create a lower low.
This then also corresponds with my earlier XAUUSD Short position(s) idea. The small push down on the DXY will give XAUUSD the small push up it needs to hit the key level to execute the sell. Then the DXY could reject from the RBR and 38% zone causing dollar to be bullish and Gold to be bearish. Therefore, increasing my confidence in the Gold Trades.
Overall, The Chart patterns for DXY and XAUUSD show a small push down for DXY to create a higher low, then to extend to the 27% fib zone to create a higher high. Gold will be the opposite, push up and then extend downwards towards 27% fib zone to create a lower low.
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