DXY (Dollar Index) Shorts from 103.400 back down!
As the dollar has been consolidating in the past week, opportunities near the current price are limited. However, my nearest Point of Interest (POI) is a supply zone on the 14-hour chart. I am looking to capitalize on this by selling to continue the bearish trend observed in the dollar index. I'll be patiently waiting for a breakout from this range, aiming to fill the imbalances above and eventually reach our identified supply zone.
On the flip side, if price breaks below the consolidation, it could tap into a demand zone, sweeping liquidity beneath the range. In this scenario, I anticipate a bullish reaction, possibly a temporary move to the upside before eventually targeting our supply zone.
Confluences for Dollar sells are as follows:
- Overall temporary trend for this pair is bearish so this idea aligns with that bias.
- Bullish pressure is now getting exhausted as you can see from the ranging price action
- Price has left imbalances just below the supply that needs to get filled, validating our POI.
- There is lots of liquidity to the downside that needs to be taken.
- Price is due for a pullback to enter a level of supply if price wants to keep dropping lower.
P.S. If price unfolds in a manner similar to how EURUSD is behaving, I will patiently await a breakout from this area. Subsequently, I will assess its behaviour and adapt my approach based on the information the market presents.
Have a great week ahead traders!
On the flip side, if price breaks below the consolidation, it could tap into a demand zone, sweeping liquidity beneath the range. In this scenario, I anticipate a bullish reaction, possibly a temporary move to the upside before eventually targeting our supply zone.
Confluences for Dollar sells are as follows:
- Overall temporary trend for this pair is bearish so this idea aligns with that bias.
- Bullish pressure is now getting exhausted as you can see from the ranging price action
- Price has left imbalances just below the supply that needs to get filled, validating our POI.
- There is lots of liquidity to the downside that needs to be taken.
- Price is due for a pullback to enter a level of supply if price wants to keep dropping lower.
P.S. If price unfolds in a manner similar to how EURUSD is behaving, I will patiently await a breakout from this area. Subsequently, I will assess its behaviour and adapt my approach based on the information the market presents.
Have a great week ahead traders!
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