DXY - Be Prepared! 📣

Dec 4, 2022

Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst.

For those who know me, I always keep an eye on DXY to feel the overall market (stock, crypto, forex)

As per my last analysis (attached on the chart), DXY rejected the upper bound of the brown channel and traded lower.

Now What? and why you need to be prepared?

As we all know, while DXY was losing strength, the entire market (stock, crypto, forex) has a bull relief movement.

But I believe, the party will be over soon!

Here is why:

DXY is approaching a strong rejection zone that consists of two textbook structures.

1- the 102.0 - 103.5 is a strong resistance turned support

2. the blue zone is a strong demand zone as it is the only bearish candle inside a previous big bullish movement upward

As per my trading style:
As DXY approaches the blue zone, I will be looking for bullish reversal setups on lower timeframes (like a double bottom pattern, trendline break , and so on...)

Always follow your trading plan regarding entry, risk management, and trade management.

Good luck!

All Strategies Are Good; If Managed Properly!
~Rich