DXY (Dollar Index) Shorts from 103.300 down towards 101.500My bias for the dollar this week remains bearish, leading me to seek pro-trend trades from any proximate valid supply zones. With the recent reaction from my prior 3-hour demand, I anticipate the price to continue its ascent to address the imbalances above.
Subsequently, my expectation is for the price to undergo distribution within a supply zone identified on the 14-hour chart, providing opportunities for selling positions on the way down. While acknowledging the possibility that the price may not ascend as high and instead continues to drop, I am prepared to wait for a new demand zone to seize potential buy opportunities in such a scenario.
Confluences for DXY Shorts are as follows:
- Price broke structure to the downside on the HTF, confirming a bearish bias.
- There's lots of liquidity left below in the form of trend line liquidity and asian lows.
- There's a clean 14hr supply zone that has caused the impulsive move to the downside in which I expect price to react from next.
- Since there are imbalances beneath the supply, it's probable that once the price addresses them, a bearish reaction will ensue from the supply.
P.S. My bearish stance on the dollar persists, prompted by the recent structural break observed on the higher time frame (HTF). This strengthens my inclination toward bearish positions, making me more inclined towards considering long positions for pairs like GBPUSD and EURUSD. If you guys have another take on this market I would love for you guys to leave a comment!
