DXY Analysis: Rejection from Resistance – More Downside AheadWelcome back, guys! I'm Skeptic, and let's start the week with a DXY analysis.
This is a crucial period for the dollar index, with many significant events unfolding—one of the most important being Trump’s tariff war. Now, let’s break down the technical outlook on DXY.
1D Timeframe
Looking at the daily chart, we can see that DXY has been rejected from a key resistance zone. Additionally, since it has formed a lower high, I still maintain my previous analysis that DXY is currently undergoing a correction within its previous uptrend. This means we could see further declines. The key support level to watch here is the 35% Fibonacci retracement zone at 105.720.
4H Timeframe – Finding a Trigger
On the 4H chart, we had a daily resistance zone that was briefly broken but turned out to be a fake breakout. This suggests that liquidity has been swept above the resistance, liquidating long positions, and now the market has more momentum to push downward.
The main short trigger is at 106.188, but depending on momentum, we could potentially enter even earlier on lower timeframes.
Key Risk Factor: While we are currently in a correction phase, the major trend is still an uptrend. That means risk should be managed carefully, and trades should be closed sooner than usual.
Final Thoughts
Thanks for sticking around until the end of the analysis. From now on, I’ve decided to publish separate analyses for indices, forex pairs, and BTC instead of grouping them into one post. Let me know what you think about this new format— do you prefer everything in one post, or is this better?
See you in the next analysis! 🚀
