DXY long-term support is holding time for a hard bounce?
In this article, we will take a look at the DXY from higher time frames to actionable lower time frames
On the monthly chart, we can see that the instrument is testing a strong long-term support confluence of the uptrend line and horizontal zone. Several weekly bounces are making 93 a nice bounce level for the reversal higher. Only a clear confirmed break below 92 could lead to a complete downside reversal.
The weekly chart is indicating the bounce off the 93 and an extremely oversold reading od the instruments oscillator. The first upside resistance in the case of a confirmed bounce is 95 and a confirmed break above this level will give us a high probability long trade entries for the USD medium-term.
On a daily chart, we can see that the instrument is supported by the uptrend line and basing zone 92.5-93. You can start building your buying position by placing stop-loss orders below 92.30 to target 95 in the next move higher, and a strong upside reversal resistance test. Oscillators are turning higher and indicating base has been form.
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We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
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