By MJTrading:
Chart Overview:
The US Dollar Index has now approached a major technical confluence zone that could define the next directional move. Price is pressing into the Danger Zone near the lower boundary of a multi-year descending channel, with an Ultimate Oversell Target sitting just below.
🔹 Key Technical Highlights:
Long-Term Down Channel (Daily & Weekly):
The DXY has respected this structure for several years.
Price is currently challenging the lower boundary, a zone where reactions often occur.
Danger Zone (~95–96):
A historically reactive area.
Prior demand and channel floor converge here.
Ultimate Oversell Target (~89–90):
Marked as a deeper potential exhaustion area if the channel fails.
Moving Averages:
15 EMA ~97.8
60 EMA ~99.3
Price remains below both EMAs, confirming persistent bearish momentum.
🔹 Potential Scenarios:
Scenario A (Green Path):
A bounce off current support could trigger a relief rally back toward 98–100, targeting the mid-channel and EMAs.
Scenario B (Red Path):
A breakdown below ~95 could accelerate selling pressure, aiming for the Ultimate Oversell Target (~89).
🔹 How I See It:
This is a high-risk inflection zone. Any bullish setups here remain counter-trend and require confirmation via strong reversal signals. Conversely, a decisive breakdown could have significant implications for USD pairs and commodities.
💡 Notes:
This chart includes the weekly inset view for broader context.
Keep risk management tight in this volatile area.
🔹 Reminder:
This idea is for educational purposes only—not financial advice.
💬 How are you positioning around the USD? Share your thoughts and charts below!
#Hashtags:
#MJTrading #DXY #USDollarIndex #Dollar #Forex #TechnicalAnalysis #TradingView #ChartAnalysis #PriceAction #FX #USD #Majors #DollarWeakness #DollarStrength #SupportAndResistance #TrendAnalysis #MarketOutlook
Chart Overview:
The US Dollar Index has now approached a major technical confluence zone that could define the next directional move. Price is pressing into the Danger Zone near the lower boundary of a multi-year descending channel, with an Ultimate Oversell Target sitting just below.
🔹 Key Technical Highlights:
Long-Term Down Channel (Daily & Weekly):
The DXY has respected this structure for several years.
Price is currently challenging the lower boundary, a zone where reactions often occur.
Danger Zone (~95–96):
A historically reactive area.
Prior demand and channel floor converge here.
Ultimate Oversell Target (~89–90):
Marked as a deeper potential exhaustion area if the channel fails.
Moving Averages:
15 EMA ~97.8
60 EMA ~99.3
Price remains below both EMAs, confirming persistent bearish momentum.
🔹 Potential Scenarios:
Scenario A (Green Path):
A bounce off current support could trigger a relief rally back toward 98–100, targeting the mid-channel and EMAs.
Scenario B (Red Path):
A breakdown below ~95 could accelerate selling pressure, aiming for the Ultimate Oversell Target (~89).
🔹 How I See It:
This is a high-risk inflection zone. Any bullish setups here remain counter-trend and require confirmation via strong reversal signals. Conversely, a decisive breakdown could have significant implications for USD pairs and commodities.
💡 Notes:
This chart includes the weekly inset view for broader context.
Keep risk management tight in this volatile area.
🔹 Reminder:
This idea is for educational purposes only—not financial advice.
💬 How are you positioning around the USD? Share your thoughts and charts below!
#Hashtags:
#MJTrading #DXY #USDollarIndex #Dollar #Forex #TechnicalAnalysis #TradingView #ChartAnalysis #PriceAction #FX #USD #Majors #DollarWeakness #DollarStrength #SupportAndResistance #TrendAnalysis #MarketOutlook
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.