The US Dollar DXY index has retreated from its 48-day high last week.

Second Finlogix analysis today goes to the DXY index.

After a fateful 7 win streak, I have finally made a new loss from last week’s trade plan:

https://www.finlogix.com/analysis/20240402/dxy-intraday-analysis-and-trading-plan-for-april-2-2024

There are 9 major economic reports in the US this week with the markets eyeing CPI figures on Wednesday.

Volatile sessions are observed throughout the trading week ahead.

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

Yearly Candle: Still Green Body since last check but with a Longer Head Wick

Monthly Candle: Last check is a Green Body now a Red Long-Legged Spinning Top with a Small Body

Weekly Candle: Previous close is a Red Long-Legged Spinning Top with a Small Body current is developing a Small Green Semi-Doji

Daily Candle: Friday close is a Green Long Upper Shadow current is developing a Green Semi-Doji

DXY’s 25-day uptrend looks finished after a retreat from its 48-day high last week.

However, the index is still trading above its 200-day SMA after a good holding above the 104 last Thursday to end a 2-day drop.

Friday’s rally towards Wednesday high was not contained after better than forecasted Non-Farm Employment Change and Unemployment Rate figures came out.

With the anticipated hot CPI data coming this mid week, the Dollar is regathering strength from nearby support levels above its 200-day SMA.

Based on the current price actions that the index had, I think the Dollar is going to fall ahead of the CPI figures release and will further drop if the figures are weak.

With a timely retreat from its 48-day high and a strong rejection on Friday, I am going to sell the Dollar through the following orders:

I’m simply trying to take advantage of the DXY’s index weakened attempt to reclaim the strong 105 levels.

It’s still hovering in its premium zone and I’m capitalizing to short it towards the discount area.

DXY Intraday Analysis and Trading Plan For April 8, 2024

Apr 08 2024

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