DXY at a Critical Level – Reversal or Continuation?
Welcome back, guys! I’m Skeptic, and let’s break down the DXY.
If you’ve been following my previous analysis, I mentioned that we are currently in a secondary downtrend, and that still holds true. However, it’s wise to gradually reduce risk and secure profits earlier for two key reasons:
1️⃣ We are approaching a critical support zone – the 60% Fibonacci retracement, which aligns with multiple key support levels.
2️⃣ The weekly candle structure – Looking at the weekly chart, we’ve already hit the four-week pivot point, meaning the market could either range here or even start a price reversal.
Interesting stat: So far, this weekly candle is the largest since November 2022 and the second-largest since March 2020, which signals significant market movement.
4H Timeframe Breakdown
In my last analysis, I mentioned:
🚨 The main short trigger is at 106.188, but depending on momentum, we could potentially enter even earlier on lower timeframes.
Now, 104.250 has already been broken, and the next key support sits at 103.398.
🔹 If you’re holding short positions, this 103.398 level is a great zone to secure profits.
🔹 No new triggers for now – I don’t expect immediate continuation, and as mentioned, we could see a range formation or even a reversal from here.
Let’s see how price action develops. See you in the next analysis! 🔥📉
If you’ve been following my previous analysis, I mentioned that we are currently in a secondary downtrend, and that still holds true. However, it’s wise to gradually reduce risk and secure profits earlier for two key reasons:
1️⃣ We are approaching a critical support zone – the 60% Fibonacci retracement, which aligns with multiple key support levels.
2️⃣ The weekly candle structure – Looking at the weekly chart, we’ve already hit the four-week pivot point, meaning the market could either range here or even start a price reversal.
Interesting stat: So far, this weekly candle is the largest since November 2022 and the second-largest since March 2020, which signals significant market movement.
4H Timeframe Breakdown
In my last analysis, I mentioned:
🚨 The main short trigger is at 106.188, but depending on momentum, we could potentially enter even earlier on lower timeframes.
Now, 104.250 has already been broken, and the next key support sits at 103.398.
🔹 If you’re holding short positions, this 103.398 level is a great zone to secure profits.
🔹 No new triggers for now – I don’t expect immediate continuation, and as mentioned, we could see a range formation or even a reversal from here.
Let’s see how price action develops. See you in the next analysis! 🔥📉
Note
Sorry, the trigger for the previous analysis was 106.188, not 104.250. You can check this in the previous related analysis attachment. I just realized this and will correct it. 
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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.
Related publications
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.