DXY recently pulled back after the strong breakout higher above a previous strong long-term resistance of 103.800. After reaching the high of 107.100 we have seen a strong pullback from this level and now DXY is retesting a previously broken upside resistance. Breaking above or diving below will determine a future direction for the DXY and USD pairs. If 103.800 fails to sustain in the coming days and weeks next support is 100.800 and this is critical long-term support for an invalidation of the upside continuation and a deeper pullback into channel support.
ELLIOTT WAVE LIVE TRADING VIDEO COURSE PRESALES!
The Weekly DXY chart reveals the ongoing 103.800 support test. A bounce here is required to confirm the immediate upside extension in the fourth medium-term wave continuation higher, and we are seeing an ongoing test of it. It is advisable to position yourself in just one trade direction and not to try to catch every swing. If we get a break below 103 this will be a perfect short trade opportunity and we need to wait for a proper price action bounce for the long trade.
GET THE CHART OF THE DAY EVERY DAY IN YOUR INBOX
START TRADING WITH OUR RECOMMENDED BROKER ULTIMA
As the famous trader says…
“When I get hurt in the market, I get the hell out. It doesn’t matter at all where the market is trading. I just get out, because I believe that once you’re hurt in the market, your decisions are going to be far less objective than they are when you’re doing well… If you stick around when the market is severely against you, sooner or later they are going to carry you out.”Randy McKay
How to trade this?
DXY has a great influence on all the assets in the market so we need to carefully observe the price action and make decisions based on it.
It is a fact that a strong upside support for Q4 2023 is 103. If we get a confirmed bounce here we could see a strong upside continuation and another test of 107.100. Near-term, long-trade entries have a higher probability of success but for the conservative traders upon a break above 107. Less conservative traders can open the long trade here with a bit of risk and stop the loss below 102.800.
TRADE USD PAIRS WITH CHALLENGE ACCOUNT AND GET FUNDED