Bullish Continuation on DXY Towards 105.400
The US Dollar Index (DXY) has shown signs of a potential bullish continuation after breaching and closing above the previous week's high, overcoming a significant supply level at 102.750. This bullish momentum followed a two-week consolidation period, indicating a potential shift in the market sentiment.
Last week's bullish close and the successful breach of the key supply level suggest underlying strength in the DXY.
The week started off pretty volatile with price action on Monday reaching 104.600 before starting to dip lower. Anticipating higher prices, we are closely monitoring potential retracement levels for a strategic entry.
Possible Retracement Levels:
There is a possibility that the DXY could trade lower to gather new liquidity between the levels of 104.00 and 103.600. This retracement could serve as an opportunity to enter a long position, provided the DXY regains strength at these levels.
Trade Projection:
If the DXY retraces to the identified levels and shows strength, we anticipate a long position towards 105.400 and beyond. This projection aligns with the overall bullish sentiment in the market.
Pairs to Watch:
For potential longs, we will be monitoring USD/JPY and USD/CAD, seeking key levels for strategic entry points. Conversely, for shorts, we will be observing EUR/USD, GBP/USD, NZD/USD, and AUD/USD for potential setups.
Effective risk management is crucial in this trade idea. Establishing appropriate stop-loss orders and position sizes is essential to protect against unexpected market movements.
Last week's bullish close and the successful breach of the key supply level suggest underlying strength in the DXY.
The week started off pretty volatile with price action on Monday reaching 104.600 before starting to dip lower. Anticipating higher prices, we are closely monitoring potential retracement levels for a strategic entry.
Possible Retracement Levels:
There is a possibility that the DXY could trade lower to gather new liquidity between the levels of 104.00 and 103.600. This retracement could serve as an opportunity to enter a long position, provided the DXY regains strength at these levels.
Trade Projection:
If the DXY retraces to the identified levels and shows strength, we anticipate a long position towards 105.400 and beyond. This projection aligns with the overall bullish sentiment in the market.
Pairs to Watch:
For potential longs, we will be monitoring USD/JPY and USD/CAD, seeking key levels for strategic entry points. Conversely, for shorts, we will be observing EUR/USD, GBP/USD, NZD/USD, and AUD/USD for potential setups.
Effective risk management is crucial in this trade idea. Establishing appropriate stop-loss orders and position sizes is essential to protect against unexpected market movements.
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