DXY (Dollar$) Shorts down to 101.500The bias for the dollar this week remains bearish, leading me to anticipate further downward trends. Near the current price, there is a supply zone on the 3-hour chart where we'll wait for price redistribution. Following that, we'll await confirmation on a lower timeframe to execute the sell trade. Additionally, I anticipate a minor reaction from the 13-hour demand zone, presenting potential small buying opportunities.
Subsequently, we anticipate the price to continue its descent and then respond to a 3-hour demand at 101.500. This is where I expect the price to retrace upwards, providing a more favourable opportunity for a buy trade.
Confluences for DXY Shorts are as follows:
- The short term trend currently is bearish (with perpetual BOS's to the downside.)
- Trend lines below act as magnets, pulling the price downwards and encouraging a bearish continuation.
- To evoke a bullish reaction from the price next, there's a strong demand zone on the 3hr time frame.
- A clear 3-hour supply zone sits above the current price, where we can expect a bearish response.
- By the candle stick anatomy bearish candles are very strong, holding lots of momentum.
P.S. I also observe the potential for the price to rise, targeting a more favourable supply zone like the (7hr) to initiate a robust bearish movement. Despite the strong bearish trend currently, we will primarily seek opportunities aligning with the trend. However, the next viable counter-trend trade would be at the 3-hour demand level around 101.500.
