Weekly market breakdown- DXY
Updated
Good Afternoon traders!, I will be actively using this platform to journal and share my perspectives on trades to hopefully add value and inner confidence to your very own analyses. To begin with, il be giving my perspective on the DXY because of its validity in helping understanding how USD majors may be performing in relation to the performance of the DXY. So, initially, the higher time frames help to gauge what the trend is and the keys institutional levels that are in play. With the DXY, the dollar index has created progressive momentum towards the upside of 98.00. However, this proved to be a very pivotal and supply zone, this is because of the two previous months, the price was conveying signs of exhaustion around this barrier with two spinning tops which suggest signs of reversal. observing the smaller timeframes, I can see price created the 3rd drive, however, reversed to the downside tapping our trendline. It's likely, that price could make a correction towards the key 98.00 barriers before falling further down towards our outer trendline, with the -61.8% acting as the additional confluence with the key weekly support. The macro sentiment is fueling a lot of negative due to trade wars between China and USA, and on top of that, the negative yield curve which is the key indicator for the US coming recession is something that institutions are keeping in mind, which add further uncertainty.
Trade closed: target reached
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