DXY (USD Index) Daily Analysis July 26th, 2020
DXY Short Idea
The USD has been extremely bearish on the daily timeframe and bearish price action is not showing signs of slowing down.
Currently we are at the 95.00 zone and have to wait for price action to break or bounce from this level.
We have two potential scenarios:
1.Price action continues with bearish momentum breaks 95.00 and retraces. Look to target lower on bearish setups confirming a lower high (The blue trade path) *Most likely scenario*
2.Price action bounces at 95.00 and either consolidates or changes trend. In order to consider long positions we need to be well above 96.50 and in a strong 4hour/daily bullish trend.
The USD has been extremely bearish on the daily timeframe and bearish price action is not showing signs of slowing down.
Currently we are at the 95.00 zone and have to wait for price action to break or bounce from this level.
We have two potential scenarios:
1.Price action continues with bearish momentum breaks 95.00 and retraces. Look to target lower on bearish setups confirming a lower high (The blue trade path) *Most likely scenario*
2.Price action bounces at 95.00 and either consolidates or changes trend. In order to consider long positions we need to be well above 96.50 and in a strong 4hour/daily bullish trend.
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