Dollar Index - Finally, A Take-Off!

8 thg 10

If you have watched my previous analysis on the Dollar Index, you will know that the area of 101.994 was a target for weeks but we kept on seeing relative equal highs created.

This incentivised smart money to hold proce below in a discount in order to pile in more sell stops as classic retail minded traders would think that because LL and LH's are being formed, their stop will be safe at the next recent highs as the 'trend is your friend'

I capitalise of this mantra

What we saw was a low resistance liquidity run above daily buy stops, trading back into a macro premium.

The question is, will price hold in a premium above 101.994?

Price bullish above 101.994 = risk off conditions which equals a higher probability for traders to capitalise on a short-term/medium-term/long-term bearish trend in FX, stock index, precious metals, crypto etc..

Price bearish below 101.994 = risk on scenarios which equals to a higher probability for traders to capitalise on a short-term/medium-term/long-term bullish trend FX, stock index, precious metals and crypto.

9 thg 10

Ghi chú

Dollar holding it's ground, testing relative equal highs during the London session.
If we are to continue the bull trend, ideally i would like to see a bullish closure on the daily

10 thg 10

Ghi chú

103.546 is the next high probability draw if dollar index is going to present us with risk off conditions
I could foresee EUR and GBP continuing it's sell-off if this was to occur.

11 thg 10

Ghi chú

101.930 is the macro equilibrium.
It's coming up to one trading week where we have been in a premium.
Expecting a continuation to the upside going into next week

12 thg 10

Ghi chú

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