DOLLAR INDEX (DXY) Consolidation and Indecision 💵

4 May 2022

As we earlier discussed,
Dollar index reached a major weekly structure resistance.
The price is coiling on that for a couple of days already.

Analyzing a daily time frame, I spotted a classic inside bar formation.
Technically speaking daily candles are currently trading within the range of the 28th of April candle.
It looks like the market participants are waiting for some trigger and currently are very indecisive.

To clarify the future direction of the market,
wait for a breakout of the underlined range (you need a daily candle close above/below to confirm the breakout).

If the price breaks the lower boundary of the range, I will expect a correctional move to 101.5 structure.
If the price breaks its upper boundary, I will expect a bullish continuation to 105.0 level.

Let's see what will happen.

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5 May 2022

Not

Check my new idea on EURNZD: