Dollar Index where’s to next move? 11/04/2021

As you have read in our last post for The Dollar Index, you have seen a bearish Dollar Index. We were waiting for rejection in areas between 93.200-300 but it happens 10 PIPS lower and hit our target area 92.500 and managed to get lower to 92.144. This thing belongs to last week and, as a forex traders should be prepared for the week ahead.

In the Dollar Index, we have break 92.500 which is a significant area for this pair.
On the weekly timeframe, we had a bearish engulfing candlestick and evening star formation also
a sign of bearish momentum over the market for the weekly timeframe.

Going down on lower time-frames we can see also a bearish engulfing and test close to 92.500 which is a sign that we possibly will have a further downside momentum on the DXY.

What I am waiting this week from the Dollar Index is waiting how it will react between 0.9240 and 0.9200.

If we have rejections from the last lower high 0.92400 it will give me a chance to take longs on EURUSD(which I will cover in the next post).  If we have these rejections to 0.9240, I will see if we manage to break lower than 0.920 and hold EURUSD trade until DXY touches 0.91400-600.

Next scenario, if we break directly to 0.9200 I will wait until we touch 0.91600-400(which are an important area for this pair).

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