DXY - Febuary Price Action Analysis on the Daily
Hi guys. As everyone knows DXY is inversely related with all RIsk ASsets. We've seen the major markets and crypto start consolidating and falling in price. As the Dollar rallies.
This is on the Daily timeframe.
Ive drawn 3 trend lines which i followed closely to make sure i take profits in my trades across the boards.
First line we broke was the white trend line. Which pushed us to the next line, the red line. There was tremendous momentum seen with the size of the candles, especially the size of the one that broke out MASSIVE!
We fought that for a couple days and ended up breaking through to get to the last trend line, the Orange line which coincides with our downtrend from the September highs. This indicates we may have changed trends from downtrend.
Our next target is the white horizontal resistance line . Watch how DXY reacts here.
~Im in the camp that we will get rejected here in the short term when we reach.~
BUT if it consolidates around it, like price action did with the red line, it can break through.
ANd come down to test support on either:
1. On yellow horizontal line
2. Or the Orange slanted line
Indicator:
Also if you notice the RSI, as we were breaking the white trend line, it broke above the yellow moving average with force, and created a higher high from the previous high of the RSI. This also show cased that we would move further up in price and break the red trend line.
We are also getting to overbought terroritory on RSI marked by the 70 level or dashed line. And
We've been above the yellow MA for some time now, eventually to come back to test it and move below it which would possibly coincide with when the broader market stops consolidating. This can also coincide with not breaking the white trend line in the shorrt term. Lets see whats up!
Hope this made sense. Please comment, like and follow! Check out my other dxy ideas LINKED BELOW.
Let me know what you think and where the market is headed!
Thanks.
Disclaimer: This is not financial advice and i am not a financial advisor. This is my opinion based on TA.
This is on the Daily timeframe.
Ive drawn 3 trend lines which i followed closely to make sure i take profits in my trades across the boards.
First line we broke was the white trend line. Which pushed us to the next line, the red line. There was tremendous momentum seen with the size of the candles, especially the size of the one that broke out MASSIVE!
We fought that for a couple days and ended up breaking through to get to the last trend line, the Orange line which coincides with our downtrend from the September highs. This indicates we may have changed trends from downtrend.
Our next target is the white horizontal resistance line . Watch how DXY reacts here.
~Im in the camp that we will get rejected here in the short term when we reach.~
BUT if it consolidates around it, like price action did with the red line, it can break through.
ANd come down to test support on either:
1. On yellow horizontal line
2. Or the Orange slanted line
Indicator:
Also if you notice the RSI, as we were breaking the white trend line, it broke above the yellow moving average with force, and created a higher high from the previous high of the RSI. This also show cased that we would move further up in price and break the red trend line.
We are also getting to overbought terroritory on RSI marked by the 70 level or dashed line. And
We've been above the yellow MA for some time now, eventually to come back to test it and move below it which would possibly coincide with when the broader market stops consolidating. This can also coincide with not breaking the white trend line in the shorrt term. Lets see whats up!
Hope this made sense. Please comment, like and follow! Check out my other dxy ideas LINKED BELOW.
Let me know what you think and where the market is headed!
Thanks.
Disclaimer: This is not financial advice and i am not a financial advisor. This is my opinion based on TA.
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