DXY had 11 weeks of bull bar closes until this past week, which ended with a pin top bear bar. The body was small and closed above the support line of the trend, making it a weak sell signal.
This week, we watch to see if DXY bounces off of the intersection of the trend line support and previous high, or falls through to the Daily 30EMA at 105.430, or 200EMA at 103.800. If we close below 105.800, this means the bulls did not hold enough conviction to maintain the trend, signaling that a minor pullback is in order. The Daily 30EMA and 200EMA levels mentioned would be the expected targets.
If we close above 106.400 (Above the Daily 9EMA), then I would look for the next resistance at 108.000 which was established during the week of November 21, 2022. The longer this trend burns, the greater chance of a pullback. I would wait for a minor pullback to enter a long or scalp with a small position size until that happens.
Let me know what you think!
This week, we watch to see if DXY bounces off of the intersection of the trend line support and previous high, or falls through to the Daily 30EMA at 105.430, or 200EMA at 103.800. If we close below 105.800, this means the bulls did not hold enough conviction to maintain the trend, signaling that a minor pullback is in order. The Daily 30EMA and 200EMA levels mentioned would be the expected targets.
If we close above 106.400 (Above the Daily 9EMA), then I would look for the next resistance at 108.000 which was established during the week of November 21, 2022. The longer this trend burns, the greater chance of a pullback. I would wait for a minor pullback to enter a long or scalp with a small position size until that happens.
Let me know what you think!
-Joe Dean
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Trader Engineering Course (Coming Soon!)
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