- January 23, 2023
- Posted by: Tradingshot Articles
- Category: Forex
The U.S. Dollar Index (DXY) it currently testing its 4H MA50 (blue trend-line), which has caused two rejections last week and has been closing all 4H candles below it since January 06. As long as it continues to do so, we expect a short-term bearish trend between that and the medium-term Channel Down that has been in effect since November 15 2022.
A 1D candle closing above the 4H MA50, would be a buy break-out call targeting the top of the Channel Down and the 4H MA200 (orange trend-line) in particular, while a closing below the Channel Down would be a sell break-out call targeting the 1W MA200 (red trend-line) and 99.300 (0.618 Fibonacci level) in particular, as we outlined on our longer-term analysis 20 days ago: