Swing trade shorts for USD index (DXY)
A potential swing trade short has presented itself on the daily chart.
DXY failed to closed above 103 and formed an inverted hammer on the daily chart, and its upper wick met resistance at the 38.2% Fibonacci level. Daily trading volumes also declined whilst prices rose gradually, against the prior (and more aggressive) leg lower. This suggest the -day rise is corrective, hence the call for another leg lower.
Bears could fade into rallies within Tuesday's candle with a stop above and target the 102 area, near the 61.8% Fib level and high-volume node.
DXY failed to closed above 103 and formed an inverted hammer on the daily chart, and its upper wick met resistance at the 38.2% Fibonacci level. Daily trading volumes also declined whilst prices rose gradually, against the prior (and more aggressive) leg lower. This suggest the -day rise is corrective, hence the call for another leg lower.
Bears could fade into rallies within Tuesday's candle with a stop above and target the 102 area, near the 61.8% Fib level and high-volume node.
