More than ten hours from now, the US Inflation data report will be released.

I expect markets to be very volatile before and after this major economic news comes out.

Who knows we might see a classical buy rumours sell news and vice versa.

My previous trade plan has exited in profit:

https://www.finlogix.com/analysis/20240207/us-dollar-dxy-index-intraday-analysis-for-february-7-2024

As I have expected, the 103.90-104.10 range has offered supported resulting a trade back into the two 4H FVGs and printed a new lower high.

This recent local top will be the intermediate swing high resistance for the week.

I can see a clear 104.30 resistance and 103.90 support forming a close range.

My bias is a weaker US dollar speculating an improved inflation report and I am looking for a 3.0 risk:reward sell setup.

The entry point is a re-test back inside the two 4H FVG combined areas and just little above the near 104.30 resistance to collect buy side liquidity and a strong rejection commences towards my TP target at 50% fib retracement July 2023 low to October 2023 high.

If my analysis is wrong, I will risk a stop loss just above the double top candles hinting a new higher price discover for the Greenback once inflation figures are higher than expected.

Re-assessing the US Dollar DXY index high timeframe candles:

Yearly Candle: Still a Green Shaven Bottom

Monthly Candle: Still a Green Spinning Top

Weekly Candle: Previous close is a Green Shooting Star current is a Small Green Hammer

Daily Candle: Yesterday’s close is a Long Legged Green Doji

All the high timeframe candles continue to support the DXY uptrend.

The upcoming Inflation figures are crucial and the result will decide the Dollar’s next move.

Have a great trading day ahead and good luck.

US Dollar DXY Index Intraday Analysis For February 13, 2024

Feb 13 2024

Stop Loss -0.34%

Holding time 0hr

104.35

Entry price

104.70

Stop loss price

1