DXY in the long-term downtrend channel
On the Monthly DXY chart, we can see that the instrument is within a long-term downtrend Andrew’s Pitchfork channel and is going for a test of the upper half of the channel 50% line test 84. A break below 92 has opened the downside reversal inside the channel. For the downside extension to be invalidated we need to see a confirmed break above 92.
On a Weekly chart, we saw a minor Pitchfork channel downtrend bounce off the median line support 89. We could see another test of the median line as the price action is holding below the falling trend line and previously broken horizontal downside resistance 92. Look for the short trade entry in this instrument and USD across the market. Stop-loss should be above 91.50. The first target is 87.60 and the next and final target is 84.80
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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