DXY – USDOLLAR – SELL – 8th April 2021

DXY – USDOLLAR – SELL – 8th April 2021 (Closed)

Good afternoon team,

Based on the pure fact that the US Government is set to continue printing USD through covid-19 stimulus packages and infrastructure spending we see a high possibility of a weaker USD over the coming weeks. Simple supply V demand theory here. This is despite the recent surge in the DXY due to interest rates rising in the bond market. The FED has committed to keeping interest rates low for the foreseeable future, so we will play the fundamentals here, looking to front-run a trade and get into the swing position early.

DXY – Technical Analysis

https://www.tradingview.com/chart/DXY/fgyURwLB-Has-the-DXY-correction-ended/

 

4 Hour Charts

The recent rally higher has now broken down from the rising trend line support which provides the green light to enter the market. From an Elliott Wave perspective, there has been a larger 3 wave structure rally which generally means a correction, rather than a trend. This means the DXY should be heading lower.

DXY 4 Hour Charts

Trade Setup: SELL market execution, current price 9225, stop loss 9335 and take profit OPEN but the longer-term target can be found at 8925.

Stop loss: 110 pips

Take profit: 300 pips

Contract sizing:

1 contract = $10 USD per pip

0.5 contract = $5 USD per pip

Keep in mind, this will not be the only opportunity to get into this trade, therefore you do not necessarily need to commit your full position size.

If anyone has not been able to access the higher leverage please book a call to speak with us. 

 

 

Trade Setup
SELL - Market Execution

Entry
9225

Take Profit
8925

Stop Loss
9335