DXY Weekly Analysis: Imbalance Fill and Potential Reversal ZoneHi fellow traders,
I’d like to share my analysis of the U.S. Dollar Index (DXY) on the weekly timeframe. After observing recent price action, I've identified some key levels and scenarios that could play out:
Imbalance Fill: The price has recently filled a significant imbalance area (highlighted in orange). Historically, such zones often attract price action, providing potential reversal opportunities.
Price Resistance: The current price is testing a strong resistance level (marked in red). If this resistance holds, we could see a shift in momentum, leading to a potential downward move.
Balanced Price Range (BPR): Below the current level, I’ve marked a strong support zone (blue). This could act as a magnet for price in the event of a retracement or reversal.
Potential Scenario: My bias suggests that, after testing the resistance, the price may retrace, potentially forming a new imbalance (green zone) before moving downward toward the BPR. However, I will remain flexible and adapt to price action as it unfolds.
I’d love to hear your thoughts:
Do you agree with the resistance zone's significance?
Are there other indicators or confluences you’re watching for DXY?
How are you positioning yourself around this key level?
Feel free to share your insights or any alternative perspectives. Let’s grow and learn together as a community!
Happy trading,
Mack