DXY (Long) - Temporary bottom for the dollar
- The dollar has fallen significantly on the back of falling interest rates and the bank crisis
- Currently sitting at a crucial support going back several years
- My thesis is a temporary bounce up to the 50SMA on the weekly
- Bullish engulfing candle on the daily suggesting a temporary reversal
- The yields on bond have also slightly reversed, hitting a 50SMA on the weekly; yields and the dollar collerate
- This strategy could be also used for any of the USD pairs of your choice, whichever one shows the more strength relative to the dollar
- It is a short-term trade with very good risk/reward
- I would use the support line as a stop-loss
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