DXY is testing a strong downside resistance zone
What is happening with DXY? We are seeing the MONTHLY December candle touch and a test of 89 for a breakout lower but we don’t have still a follow through in January. Does this mean that the DXY is bouncing and heading higher? Should you be building the buying position…If we look at the monthly chart we can see that the Index is bouncing but is facing a strong upside resistance and a downside support 91.
At this point we can’t rule out is a violent price action around the 91-91.50 zone we are testing now as this is exactly the strong support now for a downside continuation and a resistance to the upside. At the moment a sustained break above this zone will be a clear indicator that the downside extension is invalid. We can see that clearly on the weekly chart below. We could have a consolidation also before a test of key downside extension level test 89.
On a daily chart, Already a member? This article is so good, it's for premium members only.
Does that sound like you?
Go Premium to read full trading strategy with parameters of entry, stop loss, and exit. Why Premium?
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
