USD Index – BUY – 26th August 2020

USD Index – BUY – 26th August 2020 (Closed)

Good afternoon team,

We are looking to go long on the DXY due to a number of technical reasons.

DXY Weekly Charts

The DXY is currently trading on a key trend line support.

Last weeks candle close is known as a doji candle, similar to a hammer candle. When found at the bottom of a trend it can indicate a change in momentum. Buyers are stepping in pushing the market higher.

We are now adding a BUY position on the index anticipating a move higher and a clean break of the negative trend line.

Stop loss needs to go below the swing low.

Trade Setup: BUY – Market Execution, current price on Focus markets 9310.0, stop loss set at 9200 and take profit left to run. 

Stop loss: 110 pips

FOCUS Markets CODE: USDOLLAR

Please check the specification when trading the USD Index.

1 contract =$10. This means every 0001.0 movement = $10 USD.

0.1 contract = $1. This means every 0001.0 movement = $1 USD.

Swing trade, expect time 1-2 weeks. 

Trade Setup
BUY - Market Execution

Entry
9310

Take Profit
OPEN

Stop Loss
9200