Wow! Is DXY playing mind games or what?
:) As promised, here is another great market opportunity to look at. For those of you who don't know TVC:DXY otherwise known as the U.S Dollar currency index, Is a valuation relative to a basket of other foreign currencies. So in other words anything that happens on this index represents the current US dollar strength. This is why it's so important to analyze this index first prior to looking at other pairs. Since 95% of market transactions are done with a US dollar .
Dollar Rises = Stocks Decline (pull back)
Dollar Rises or Drops = Gold doing the opposite move
Dollar Rises = Forex Major pairs to go in the Favor of US dollar
So lets get straight to the fun stuff!!
Per usual,
Before entering a trade three types of analysis should be performed.
Fundamental Analysis = The study of financial statements and economic news. (Overall Trend)
Technical Analysis = The study of chart history. (Entry & Exit Strategies)
Sentimental Analysis = The study of the markets current psychology and traders psychology.(Instinct)
After performing the three analysis below are my results:
TVC:DXY
Fundamental Analysis = LONG-TERM (BUYING) - USD Interest Rate Talk
Technical Analysis = SHORT-TERM (SELLING) + (BUYING) = SIDEWAYS ENVIRONMENTS
Sentimental Analysis = USD confidence on a slow rise.
To technically breakdown what I found:
After performing top down analysis I can see that on the monthly we are inside this very wide sideways channel that has been well respected with breakout fading happening on both ends. As of right now we are closer to the top of the range rather than the bottom. When you come into D1 timeframe you can see a rally that started back in May 2021 & has yet to fail to make a higher high/ higher low meaning that an uptrend is still very well intact. Since the month of May 2021 till present we have had an upwards trend line on the support end of the wave giving it major significance.
Market makers have attempted to make two fake breakouts to push out as many buyers and trap as many sellers before allowing the move to play out. One being on Jan.12, 2022 & the other on Feb.3, 2022. The February 3rd fake breakout is where we are currently sitting which also happens to land in the middle of two extremely optimal buying zones, the 61.8% level & the 78.6% level. If you need more confirmation feel free to wait till price closes above 95.70 which is the 61.8% level as well as the bottom of that daily ascending trend line we spoke about earlier, as drawn on chart above.
If prices drive up past 95.70 levels that we can see a rally up to the Major Resistance 97.441
If that resistance is then confidently broken up then it will most likely turn into a major support in result causing more buyers to drive the prices up to a major resistance zone as well as the top of a major monthly channel with levels near 102.50 - 103.80. I will continue to update as we go.
PRO Trade Tip: Resistance Levels tend to get broken thru during uptrends and then price typically retest the resistance as a support before continuing higher.
MY SUGGESTION:
Place LONG orders totaling anywhere from 0.5-3% of your total trading capital on each retracement level below:
Swing TRADE Entries:
23.6% = $96.77 (BUY)
38.2% = $96.36 (BUY)
50.0% = $96.00 (Great trade opportunity) (BUY)
61.8% = $95.70 (What I consider the PERFECT IDEAL TRADE) (BUY)
78.6% = $95.22 (ABSOLUTE BARGAIN!!) (BUY)
STOP LOSS: $94.05 if this price is hit then we can see a drop down to the major monthly support line as can be seen on the chart.
PRO Trader TIP: Tighter stop loss & strict management should be applied on scalps. Take what it gives you.
Take profit zone 1: $97.43 at the most recent ATH (All Time High)
Take profit zone 2: $102.50 near the top of the major channel
Be patient and trust the process. Remember if you follow this you will get ideal high probability forex trade set ups on other US Major pairs. Buy USD on other forex pairs when we arrive to our entry levels in this pair.
If you enjoy these signals/tips make sure to FOLLOW ME & show support by leaving a LIKE!!
Dollar Rises = Stocks Decline (pull back)
Dollar Rises or Drops = Gold doing the opposite move
Dollar Rises = Forex Major pairs to go in the Favor of US dollar
So lets get straight to the fun stuff!!
Per usual,
Before entering a trade three types of analysis should be performed.
Fundamental Analysis = The study of financial statements and economic news. (Overall Trend)
Technical Analysis = The study of chart history. (Entry & Exit Strategies)
Sentimental Analysis = The study of the markets current psychology and traders psychology.(Instinct)
After performing the three analysis below are my results:
TVC:DXY
Fundamental Analysis = LONG-TERM (BUYING) - USD Interest Rate Talk
Technical Analysis = SHORT-TERM (SELLING) + (BUYING) = SIDEWAYS ENVIRONMENTS
Sentimental Analysis = USD confidence on a slow rise.
To technically breakdown what I found:
After performing top down analysis I can see that on the monthly we are inside this very wide sideways channel that has been well respected with breakout fading happening on both ends. As of right now we are closer to the top of the range rather than the bottom. When you come into D1 timeframe you can see a rally that started back in May 2021 & has yet to fail to make a higher high/ higher low meaning that an uptrend is still very well intact. Since the month of May 2021 till present we have had an upwards trend line on the support end of the wave giving it major significance.
Market makers have attempted to make two fake breakouts to push out as many buyers and trap as many sellers before allowing the move to play out. One being on Jan.12, 2022 & the other on Feb.3, 2022. The February 3rd fake breakout is where we are currently sitting which also happens to land in the middle of two extremely optimal buying zones, the 61.8% level & the 78.6% level. If you need more confirmation feel free to wait till price closes above 95.70 which is the 61.8% level as well as the bottom of that daily ascending trend line we spoke about earlier, as drawn on chart above.
If prices drive up past 95.70 levels that we can see a rally up to the Major Resistance 97.441
If that resistance is then confidently broken up then it will most likely turn into a major support in result causing more buyers to drive the prices up to a major resistance zone as well as the top of a major monthly channel with levels near 102.50 - 103.80. I will continue to update as we go.
PRO Trade Tip: Resistance Levels tend to get broken thru during uptrends and then price typically retest the resistance as a support before continuing higher.
MY SUGGESTION:
Place LONG orders totaling anywhere from 0.5-3% of your total trading capital on each retracement level below:
Swing TRADE Entries:
23.6% = $96.77 (BUY)
38.2% = $96.36 (BUY)
50.0% = $96.00 (Great trade opportunity) (BUY)
61.8% = $95.70 (What I consider the PERFECT IDEAL TRADE) (BUY)
78.6% = $95.22 (ABSOLUTE BARGAIN!!) (BUY)
STOP LOSS: $94.05 if this price is hit then we can see a drop down to the major monthly support line as can be seen on the chart.
PRO Trader TIP: Tighter stop loss & strict management should be applied on scalps. Take what it gives you.
Take profit zone 1: $97.43 at the most recent ATH (All Time High)
Take profit zone 2: $102.50 near the top of the major channel
Be patient and trust the process. Remember if you follow this you will get ideal high probability forex trade set ups on other US Major pairs. Buy USD on other forex pairs when we arrive to our entry levels in this pair.
If you enjoy these signals/tips make sure to FOLLOW ME & show support by leaving a LIKE!!
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