The last Finlogix analysis today goes to the US Dollar DXY index.

After holding for 7 days and 5 hours, my previous trade plan has ended in a take profit:

https://www.finlogix.com/analysis/20240221/us-dollar-dxy-index-intraday-analysis-for-february-21-2024

I am now 2 wins and 2 losses respectively.

There are the 5 remaining US major economic reports to keep an eye on.

I expect that there will be high trading volatility in the markets to end the week specially tomorrow which is a heavy list.

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

Yearly Candle: Last check is a Green Body with Short Head Wick now a Green Shaven Bottom

Monthly Candle: Previous close is a Green Spinning Top current is developing a Small Red Body with a very Short Head Wick

Weekly Candle: Previous close is a Red Doji current is developing a Red Body

Daily Candle: Previous close is a Big Red Body With Longer Tail Wick current is developing a Red Spinning Top

It has been 22 days since DXY hit almost 105 top. The index is in a clear down wave now that the 200-day SMA is lost in yesterday’s dump timingly after Fed Chair’s 1st speech.

Current price is seeking solace in the 38.20% fib retracement (103.15) after a complete rejection on 104 level in the last 5 trading days.

Switching to the 4H chart, DXY price is consolidating again in January 16 levels. Yesterday’s low were held after a lower low printed intraday.

The remaining data will be the key hints of where the index is heading next.

Stronger data will favor the Greenback starting a new rally but if weaker expecting more lower moves towards 102.50.

Basing on this idea that DXY will seek the sell side liquidity under the lows of January 24 swing low connecting the lower move towards 102.50 50% fib retracement.

This fib area is the first layer of discount array from all the higher short positions created.

I’m going to short DXY again after it makes recovery attempts with the following entries:

The stop loss is set within the latest bearish 4H FVG formation.

Can enter a short position right now since sellers have the momentum pressure, if the current supporting fib level is broken, then the trade plan activates targeting 50% fib mentioned earlier as take profit.

With a 2.30 risk:reward score, I am hoping to be right on what I see.

US Dollar DXY Intraday Analysis and Trading Plan For March 7, 2024

Mar 07 2024

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