The US Dollar DXY index remains bullish on according to the Yearly candle with the Monthly changed to Green Top with both long head and tail wicks suggesting equal buyers and sellers’ strength for this month.
Meanwhile, the weekly and daily candles dips have confirmed the 50% fib retracement again as support. The previous October 2023 high and December 2023 low are the reference points of this fib level.
The recent 91-day high double top candles proved to be the new resistance while the previous 82-day high double top candles failed to offer immediate support as a result these two levels will be the resistances respectively.
With few hours on the New York trading session to open, I am going to create a new trade plan.
Trade Plan
From what I’m seeing, DXY is likely to fall after a consolidating rally, its up trend might end even the macroeconomics and geopolitics weigh in favor of the Greenback. I change to look for sell setups.
There’s still a large 4H FVG that has not been tested yet if DXY wants to go higher again or lower changing the current trend.
I will setup a short order against the intraday rally attempts with a stop loss above the 82-day supply and taking profit by attacking the 50% fib retracement of that 4H FVG.
All for a 1.55 risk to reward score.
Conclusion
For now this will be my playbook for the US dollar DXY index.
Good luck on this one.
Stay tune to my next analysis.
Trading involves risk.
Full read here:
https://www.finlogix.com/analysis/20240221/us-dollar-dxy-index-intraday-analysis-for-february-21-2024
