Dollar Index View On 2 Time FramesCurrently the Dollar Index is hard to predict, it can go either way and on neither time frame there's a clear trend. So I have placed the daily and the 4 hour next to each other to see if we can make a prediction.
First the daily time frame that will tell the trend for the next week. There's A LOT of room down to the lower range of the bigger channel and some decent room till the next support, on this support the index bounced back 3 times before. Within this bigger channel there's currently also a smaller channel which is the upwards trend to the upper range. Currently it's very close to touching the lower range of the smaller channel. Indicators are very bearish and don't support a bounce back yet, so its possible there will 1st be a smaller red candle that will really touch the lower range.
The 4 hour time frame that gives use the short term view for Monday and maybe Tuesday has just bounced back from the lower range and we can also draw a new upper range inside the range. If on Monday the 1st 4 hour candle will close above the new upper range we will see it go up till the upper range of the big channel before possible going back down. This move up will take about 3 candles maybe 4 which equals 12-14 hours.
In short:
4 hour time frame, 1st candle 4 hour candle of the week close above the new upper range (teal) we see it go up before going down. Since this can take 3-4 candles we will see the Dollar Index going up at the first half on the day before eventually retracing back down because it bounced of the upper range of the big channel.
Daily time frame, harde to predict. A lot will depend on Mondays close. For now I will go for a bounce back up in the smaller range up to the upper range of the big range. Of course when the lower range of the small range breaks price will at least go down to the support level. So we probably see the first 2-3 days of the week the dollar index going up before retracing back down at the end of the week.
