U.S. Dollar IndexShort
DXY: Grass isn't greener above 107
Updated
The Dollar Index (DXY) finds itself stretching towards the top of the current trading channel, eyeing the 107 mark. While this channel top is foreseen as a limiting factor in the future, the immediate trajectory for DXY hints at a stretch towards 107 before a possible retrace to the channel bottom.
Key Observations:
1. Targeting 107: DXY is progressing towards 107, post which, a descent to the red box at the channel's bottom (between 97 and 93) aligned with the 50-period Moving Average (MA) on the 3-month chart is expected.
2. Fisher Indicator: A crucial retest of the channel to meet the 55 MA/EMA is highlighted by the Fisher Indicator, verifying the trend's sustainability.
3. Pullback Needed: Despite the run, the stretched outlook on daily and weekly charts suggests a necessary pullback to at least 104, aiming for a retest of the 50-week MA.
4. ABCDE Corrective Pattern: If this phase represents the D in an ABCDE corrective pattern, the 50-month MA on the 3-month chart could help pinpoint our E.
5. Risk Assets Opportunity: As DXY nears its peak around 107, a window of opportunity opens for risk-on assets like BTC, stocks, etc., indicating a favorable period for entry.
6. Golden Cross at 103.1: This critical level needs to hold, albeit, in the short term, it's likely to continue straining risk-on assets, orchestrating a market strangle.
(Note: Thorough personal analysis and risk management are crucial before making any trading or investment decisions.)
Key Observations:
1. Targeting 107: DXY is progressing towards 107, post which, a descent to the red box at the channel's bottom (between 97 and 93) aligned with the 50-period Moving Average (MA) on the 3-month chart is expected.
2. Fisher Indicator: A crucial retest of the channel to meet the 55 MA/EMA is highlighted by the Fisher Indicator, verifying the trend's sustainability.
3. Pullback Needed: Despite the run, the stretched outlook on daily and weekly charts suggests a necessary pullback to at least 104, aiming for a retest of the 50-week MA.
4. ABCDE Corrective Pattern: If this phase represents the D in an ABCDE corrective pattern, the 50-month MA on the 3-month chart could help pinpoint our E.
5. Risk Assets Opportunity: As DXY nears its peak around 107, a window of opportunity opens for risk-on assets like BTC, stocks, etc., indicating a favorable period for entry.
6. Golden Cross at 103.1: This critical level needs to hold, albeit, in the short term, it's likely to continue straining risk-on assets, orchestrating a market strangle.
(Note: Thorough personal analysis and risk management are crucial before making any trading or investment decisions.)
Trade active
107 won't be easy to get over and create support there. Until then.Risk assets dips can be bought.
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