This is a bullish setup on the U.S. Dollar Index (DXY), taken from the 1H timeframe using Smart Money Concepts.
Price retraced into a clearly defined 1H demand zone where it also tapped a trendline support, creating a strong confluence +an LQC. The zone had internal liquidity swept and price mitigated a bullish order block, indicating potential institutional re-accumulation.
Entry was taken after bullish confirmation within the zone (engulfing candle), aligned with my SMC strategy which targets liquidity grabs and mitigation zones.
🔹 Entry: 98.06
🔹 SL: 97.83 (below the zone and structure)
🔹 TP: 99.11 (previous H1 high & clean supply zone)
🔹 RR: Approx. 4.5R
🔍 Technical Confluences:
Demand zone + OB mitigation + LQC
Trendline reaction (support respected)
Liquidity sweep + BOS (Break of Structure)
Clean imbalance above = fuel for price
Bullish engulfing as confirmation
📰 Fundamental Bias:
Today’s U.S. Jobless Claims came in better than expected, signaling labor market strength. Additionally, Retail Sales data was positive, reinforcing USD strength. These support a hawkish Fed narrative, aligning with our bullish technical setup.
Bias remains bullish unless price closes below 97.83 (invalidation level).
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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.