DXY (USD Index) 4Hour Analysis February, 7th, 2021
DXY Long Idea
Weekly Trend: Bearish
Daily Trend: Bearish
4Hour Trend: Bullish
Trade scenario 1: Overall DXY is bearish on the daily timeframe and higher. But we have recently been seeing strong bullish momentum on the 4hour timeframe. Ideally we want to see this momentum continue and will look for strong bullish setups off key support near 90.800. Look to target our monthly level at 91.500. If price action breaks our monthly, look to target the -27% fib level.
Trade scenario 2: For us to consider a bearish dollar we need to see a major transition happen on the 4hour timeframe. Look for price action to break 90.800 and form a lower high below. Target lower toward 90.000.
Weekly Trend: Bearish
Daily Trend: Bearish
4Hour Trend: Bullish
Trade scenario 1: Overall DXY is bearish on the daily timeframe and higher. But we have recently been seeing strong bullish momentum on the 4hour timeframe. Ideally we want to see this momentum continue and will look for strong bullish setups off key support near 90.800. Look to target our monthly level at 91.500. If price action breaks our monthly, look to target the -27% fib level.
Trade scenario 2: For us to consider a bearish dollar we need to see a major transition happen on the 4hour timeframe. Look for price action to break 90.800 and form a lower high below. Target lower toward 90.000.