Dollar Index(DXY) bias
Looking at the higher time frame for the DXY. We can see order flow bullish in the mean time. After tapping in to the weekly OB(demand) we have been rallying higher ever since. The past two weeks we have been noticing a retracement on the DXY.
Now the question is why?
If you look to the left we see the in OCT 2023 the DXY had a massive sell-off after tapping to unmitigated supply from 2001. That sell off left a break away gap. This gap served as resistance when revisited the last couple of weeks.
This has led to a retracement to a daily OB(demand).
If order flow remains bullish we should see price rally to the upside to take out buyside liquidity. Meaning we can see a sell-off on X/USD pairs.
But until we can confirm price intention on the lower timeframe we sit and wait patiently.
Now the question is why?
If you look to the left we see the in OCT 2023 the DXY had a massive sell-off after tapping to unmitigated supply from 2001. That sell off left a break away gap. This gap served as resistance when revisited the last couple of weeks.
This has led to a retracement to a daily OB(demand).
If order flow remains bullish we should see price rally to the upside to take out buyside liquidity. Meaning we can see a sell-off on X/USD pairs.
But until we can confirm price intention on the lower timeframe we sit and wait patiently.
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