Happy Wednesday and Valentines day everyone.

The CPI figures came out higher than forecasted and so the immediate reaction was an overnight Greenback breakout after a 4-5 consolidation near the 103.90 support levels.

Previous double top candles last February 5-6 was completely annihilated. The recent 82-day high was exceeded to a 90-day fresh high. The US Dollar has gotten fundamentally stronger and poised for higher high extensions!

The inflation in the US economy is still high. It cements more Fed’s decision to delay rate cuts on top of a strong employment and I think it will be less possible this year.

My yesterday’s trade plan has exited in a loss:

https://www.finlogix.com/analysis/20240213/us-dollar-dxy-index-intraday-analysis-for-february-13-2024

Re-assessing the US Dollar DXY index high timeframe candles first before I go to my trade plan today:

Yearly Candle: Last check is a Green Shaven Bottom now a Green Body

Monthly Candle: Last check is a Green Spinning Top now a Large Body Green Hammer

Weekly Candle: Last check is a Small Green Hammer now a Green Body

Daily Candle: Yesterday’s close is a Large Green Body

All the high timeframe candles have confirmed for DXY’s uptrend continuation. That’s it, do not fight against a trend it’s our friend. I will adapt my upcoming trades to a buy US Dollar.

On the day, there will be pullbacks as part of a new consolidation phase.

The previous 82-day high which contains the double top candles will be one of the nearby resistances got flipped into a support.

The other supports I am seeing are 104.80 and 104.40 that are inside the new bullish 4H FVG. I like to put the buy entry on these areas.

I will put a wide stop loss mark below the 103.90 solidified support. I find it safer there! Until the new 4H FVG is retraced completely, it will be a good stop loss level.

My take profit targets the November 2023 CoCH and part of the 1D FVG territory. 

Take a look at the DXY chart above, price at time of writing is consolidating inside the 1D FVG. Once it’s done, price propels higher.

US Dollar DXY Index Intraday Analysis For February 14, 2024

Feb 14 2024

Stop Loss -0.57%

Holding time 5d1hr

104.60

Entry price

104.00

Stop loss price

1