USDX Futures Contract Analysis

This is the U.S Dollar Futures contract expiring in December. I usually use this in Forex but lately the crypto market has been moving like the Forex market so i might as well drop it in here so you can use this information to analyse for the 4th Quarter of the year.

Below the chart, there are 2 panes (the 1st pane indicates the Commitment of Traders report and the second pane indicates the institutional Open interest)

For the 1st pane, focus on the red line which indicates the Commercial Banks. We can see that the red line is increasing which indicates that Commercial Banks (The big players in the market) are increasing their Net Long positions on the Dollar.

For the 2nd Pane, the purple line indicates the Open interest within the market. We can see that the previous 2 weeks, the Open interest dropped drastically. What does this mean to a Smart Money Trader? The commercial banks are doing something called Short Covering (simply said, they are using this opportunity to close their short positions by opening Long positions).

Now that I have explained what the 2 panes are implying... Look at the chart of the Weekly USDX futures contract, price has reached the Bullish Orderblock.

What do you think will happen next 😏 ?

https://www.barchart.com/futures/quotes/DXZ22/interactive-chart