DXY Bullish Reversal Setup Toward 98.20 Target Entry Point
Marked at: ~97.200
The price has already reacted multiple times around this level, suggesting it's a key support zone.
🛑 Stop Loss
Placed at: ~96.930
Just below the support zone, protecting against a breakdown below recent lows.
This implies a risk of about 27 pips from the entry.
🎯 Target Point (TP)
Marked at: ~98.201
Strong resistance zone from previous price action.
Target implies a potential reward of 100+ pips, offering a risk-reward ratio (RRR) of ~3.7:1, which is favorable.
📊 Resistance Area
Around 97.419–97.465
This is the first obstacle the price must break through to confirm bullish continuation.
The 200 EMA (blue curve) is currently acting as dynamic resistance, aligning near this zone.
📉 Indicators
Moving Averages:
Red: Likely 50 EMA
Blue: Likely 200 EMA
Price is currently below both EMAs — so trend is still bearish, but trying to shift.
📌 Strategy Insight
The setup anticipates a bullish reversal from 97.200, aiming for a breakout above the 200 EMA and resistance to reach the 98.201 zone.
For confirmation, watch for a strong bullish candle close above 97.465, which would validate upside continuation.
⚠️ Risks
Price is still under both moving averages → downward momentum may persist.
If support at 97.00 breaks, downside acceleration could occur.
✅ Conclusion:
This is a bullish breakout setup on DXY with:
Defined entry and stop-loss.
Clear target.
High RRR.
But it’s crucial to wait for confirmation above resistance (97.465) before full conviction on the long trade.
