DXY supportive to the bullish side (multi-scenario chart)
Updated
Chart using ICT orderblocks. Would rather see DXY make a small retracement at 96.2 because it can then regain strength to make a higher high. Breaks are moments we need to closely monitor price action on a lower timeframe. Technically price should not trade into the orderblocks too far, since most of these barely have any wicks. In other words, we are going to allow movement into the wicks, but not too many pips into the body. If it does move into the body of the orderblocks, we'll assume price continues to the upside. If the reaction is too heavy and has too much momentum off of the bearish orderblocks we will see a consequent move or retracement as a likely probability.
Note
As we reached the first top resistance I decided to look at the DXY in a more zoomed in perspective. Here's a 5minute chart showing that there's a reaction on the 96.15-96.2 level as mentioned. I'm hoping for smaller timeframe consolidation and push through to the upside.Honestly we should not have traded through the orderblock if we were going to be bearish, so things are still looking strong for the dollar index.
Note
It's good to occasionally have a look at the lower timeframe chart. Why? Because price often moves a lot within a short amount of time. Again we can't find this bullish orderblock without looking at anything lower than 1h. DXY is still bullish, unwilling to trade lower.Note
NOTE: I was only able to pinpoint the exact high of the orderblock by using that 15 minute chart.Note
Still on the right track:
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.