Dollar - Bottom Is InToday we have an excellent opportunity for Dollar on the 8H chart with a trend bottom. I really like the look of this set up!
Price hit the 1.414 Fibonacci extension leg, hit horizontal support, and hit the channel support level simultaneously. There is so much structure support at current level that it is definitely a good idea to look for a buying opportunity.
At this current moment in time, price is correcting to the upside. I have highlighted 2 targets on the chart which could be favorable if the trade works out.
I believe this trade could play out in several different ways. I have outlined these below.
Price will carry on with the upside move without stalling, to hit the 1st target of 93.62.
Price will stall and retest the support level, before going to the upside again. (This trading scenario would be less risky than the first.)
Price will travel to the upside, have a small correction, and then go to the highs. (This scenario would be the best. As we can: Add to position on the small wave correction before reaching target. 2: We can take profits on the correction, and then buy in again, removing most risk.)
Bare in mind that price could exceed target and go to target 2 (The extended target illustrated on the chart) at 94.96. We will look at this as a target if price exceeds target 1. (See chart for details.)
Use this analysis to guide you with this trade, but also factor in your own.
Sometimes less is more. Let's listen to the basic message of the structure, and allow it to tell us what to do.
I will be updating this analysis as the trade plays out. So like & follow so that you do not miss out of my latest analysis and updates.
