Trade of the week DXY rejection from the long-term downside channel
DXY (US INDEX) could be our trade of the week. DXY is trading within a long-term downtrend Pitchfork channel as it can be seen on a Monthly chart. We had a focus on its upper trendline 99.50 level after it has bounced from a median line 88 level (Inverted H&S see our article) and reached an extended target.
On a daily chart, we can see a break below what seems to be a terminal rising wedge (usually bearish). Based on this break you can place a short trade entry with a stop loss above the 98.75 level targeting a confluence of the rising trendlines 97.60 level and even trailing the profit further downside. ARMAT trading system is indicating a potential 100 point of profit.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
Happy trading! (click on the chart to enlarge it)
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