Since the DXY is forming the initial shape of a 4-hour bullish pattern, it can reach the daily supply zone.
First of all, there are two cases: whether the daily downtrend is followed by market action in the daily supply zone, or whether it is propagated as a weekly correction reaching the weekly supply zone.
First, if the daily downtrend continues, DXY is likely to fall again even if it rebounds because it is a deep monthly correction process.
Second, if DXY changes to rise in the daily supply zone, it is a weekly correction process,
so all markets that have risen so far, such as EURUSD, GBPUSD, AUDUSD, Gold, and the stock market, will fall due to the weekly correction process.
The problem is that DXY is rebounding out of the monthly demand zone, so there could be a monthly uptrend.
After DXY reaches the weekly supply zone, it seems likely that it will decide whether to go to the W-X-Y correction or to the monthly uptrend.
First of all, there are two cases: whether the daily downtrend is followed by market action in the daily supply zone, or whether it is propagated as a weekly correction reaching the weekly supply zone.
First, if the daily downtrend continues, DXY is likely to fall again even if it rebounds because it is a deep monthly correction process.
Second, if DXY changes to rise in the daily supply zone, it is a weekly correction process,
so all markets that have risen so far, such as EURUSD, GBPUSD, AUDUSD, Gold, and the stock market, will fall due to the weekly correction process.
The problem is that DXY is rebounding out of the monthly demand zone, so there could be a monthly uptrend.
After DXY reaches the weekly supply zone, it seems likely that it will decide whether to go to the W-X-Y correction or to the monthly uptrend.
Trade closed: target reached
The analysis is no longer valid because it has been pushed out of the daily supply zone.If the dollar now rises through the weekly correction process, it is highly likely to break above the daily supply zone again.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.