DXY (Dollar Index) Longs from 102.200 back upThe dollar index is presently responding to my 14hr supply zone, leading to a visible bearish reaction. Given that this supply is part of a 2-day supply, I anticipate price to move upward to further mitigate this supply, potentially triggering a more stronger bearish response.
With the breakout from consolidation, I anticipate clearer price action. I will be monitoring for price to reach a 10hr demand zone that has previously resulted in a BOS on the higher timeframe. Upon reaching this point of interest (POI), I will then be on the lookout for an accumulation to unfold.
Confluences for Dollar buys are as follows.
- Market trend is overall bullish on the higher timeframe
- Price has broken structure to the upside on the HTF.
- Price is currently reacting off a supply to trigger the pullback towards our demand
- Theres lots of liquidity and imbalances that need to get taken above as well.
- 10hr demand zone lies within the 0.78 fib range and it caused the BOS to happen
P.S. While I don't engage in direct trading of the dollar, I utilise it for confluence, especially since this pair significantly impacts the others I monitor. There's a possibility of a short-lived bullish trend if the 2-day supply zone doesn't hold. However, given the initial reaction, a downward movement seems likely.
HAVE A GREAT TRADING WEEK AHEAD, LET'S CATCH THESE PIPS!
