DXY Correction Plays Out – Is a Reversal Next?

5 giorni fa

Since the end of January, I have been anticipating a correction in the DXY , with a target around the 106 support level.

This correction has unfolded as expected, with the Dollar Index touching 106 on Monday, followed by another test and reversal yesterday.

A key observation is that since the early February spike, the DXY has been trading within a falling wedge—a pattern that often signals a potential reversal.

What’s Next?

✅ Bullish confirmation would come with a daily close above the 106.60–106.70 zone. If this happens, we could see a move up to 108.50, a key resistance level.
✅ Interim resistance sits at 107.30, which could also act as a potential target for bulls.

Trading Implications:

If the Dollar Index confirms an upside breakout, it could present selling opportunities in EURUSD , GBPUSD , AUDUSD , and NZDUSD .

3 giorni fa

Trade attivo

107.30 target hit.
Let's see if we have up continuation from here