DXY$ Shorts from 105.800 down towards 105.200
As expected our last week scenario (A) played out perfectly like we anticipated which was seeing a bullish reaction from the 4hr demand. For this week's bias we are still temporarily bearish with the dollar as it's approaching a clean 14hr supply zone. As soon as it gets tapped in I will be waiting for my lower time frame confirmation i.e. a Wyckoff distribution schematic and a clean CHOCH to the downside.
I would preferably wait for the asian high to get swept inside the zone before looking for a drop in the dollar index. I am bullish long term but, as price has broken structure a few times to the downside I would like to catch sells down towards the next demand at least.
My confluences for DXY$ Shorts are as follows:
- Price approaching a 14hr supply zone that has broken structure the downside.
- Imbalances have fully been filled and momentum has slowed down (good sign for a reversal)
- Huge trend line left way below that price would want to grab and theres also lots of liquidity below to target as take profit levels.
- In order for price to keep pushing up it will need to enter a level of demand, so as of now we will be trying to catch sells down towards a demand.
P.S. Only if my extreme 7hr supply zone gets violated, we will then know if price wants to continue in its bullish trend or not. But as of now I see price dropping more due to the perpetual BOS's. Also, as the dollar is a direct negative correlation to most of my pairs, the bias will suggest a bullish move to take place for EU, GU and gold If DXY$ decides to continue bearish.
I would preferably wait for the asian high to get swept inside the zone before looking for a drop in the dollar index. I am bullish long term but, as price has broken structure a few times to the downside I would like to catch sells down towards the next demand at least.
My confluences for DXY$ Shorts are as follows:
- Price approaching a 14hr supply zone that has broken structure the downside.
- Imbalances have fully been filled and momentum has slowed down (good sign for a reversal)
- Huge trend line left way below that price would want to grab and theres also lots of liquidity below to target as take profit levels.
- In order for price to keep pushing up it will need to enter a level of demand, so as of now we will be trying to catch sells down towards a demand.
P.S. Only if my extreme 7hr supply zone gets violated, we will then know if price wants to continue in its bullish trend or not. But as of now I see price dropping more due to the perpetual BOS's. Also, as the dollar is a direct negative correlation to most of my pairs, the bias will suggest a bullish move to take place for EU, GU and gold If DXY$ decides to continue bearish.
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