#DXY Possible scenario
Updated
Hello, traders. Let's take a look at the DXY chart and discuss the possible movements of this chart for the next couple of days.
As we know, the price recently broke below an important bullish channel for the first time since July 4th when this major bullish run began.
However, as you can see, it failed to break below the previous low, which has been identified as an important support level. Based on Dow theory, the bullish trend is still intact since we have not violated the most recent lower low.
So, we currently have two conflicting signals. One is bearish due to the breakdown of the long-term bullish channel, while the other is bullish because the price hasn't breached the last low.
Furthermore, following the rejection of the low, the price moved higher impulsively, suggesting that buyers are still active. This is another bullish indication. However, the formation of a descending triangle chart pattern, which is bearish in nature, provides a mixed signal.
For trading and as a personal opinion, the current price area may not be the best entry point into the market. Additionally, any upside breakout of the triangle chart pattern could potentially be a false breakout and may not be an optimal trading opportunity. However, if the price retraces lower to test the previous low and fails to break below it, we might consider taking a long position on the US dollar.
If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
As we know, the price recently broke below an important bullish channel for the first time since July 4th when this major bullish run began.
However, as you can see, it failed to break below the previous low, which has been identified as an important support level. Based on Dow theory, the bullish trend is still intact since we have not violated the most recent lower low.
So, we currently have two conflicting signals. One is bearish due to the breakdown of the long-term bullish channel, while the other is bullish because the price hasn't breached the last low.
Furthermore, following the rejection of the low, the price moved higher impulsively, suggesting that buyers are still active. This is another bullish indication. However, the formation of a descending triangle chart pattern, which is bearish in nature, provides a mixed signal.
For trading and as a personal opinion, the current price area may not be the best entry point into the market. Additionally, any upside breakout of the triangle chart pattern could potentially be a false breakout and may not be an optimal trading opportunity. However, if the price retraces lower to test the previous low and fails to break below it, we might consider taking a long position on the US dollar.
If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
Note
price appears to be responding to the important low marked on the char and is currently moving in an upward direction. It's essential to emphasize the significance of the daily candles. As observed in the daily time frame, price has been unable to close below the low, resulting in a reversal.Note
we are looking to see a pullback to the broken short term bearish trendline for another buying opportunity.
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