DXY- Two important levels to watch

7月29日In last week's analysis of the DXY, I noted that the index had reversed back above support, potentially indicating a false break. Additionally, the smaller time frame charts are showing an inverted head and shoulders pattern.

This idea remains valid, though with some reservations, as the right shoulder is taking too long to complete. This extended formation period is not ideal when trading a head and shoulders pattern.

The key level I'm watching is 104.50. If there is a clear break above this level, I will look for opportunities to sell USD pairs, with a focus on GBP/USD. Conversely, if the index breaks below 104, I will look to buy USD pairs, concentrating on AUD and NZD.

For now, it's best to wait and see where the break occurs. After such a long consolidation, the resulting move is likely to be strong.

7月29日

コメント

DXY is trading exactly in resistance
The break up would validate the H&S and give scope for further rise, potentially reaching 106 resistance given by the recent high