DXY Breakdown: Major Support in Play or More Downside Ahead?

Welcome back, guys! 👋
I'm Skeptic, and let's kick off the week with a unique and exciting analysis of DXY.

🔍 Daily Time Frame Analysis

Starting with the daily time frame, DXY recently hit a significant peak at 109.655, followed by a sharp decline, breaking below the critical support zone at 107.405. This breakdown resulted in forming lower highs and lower lows, confirming a bearish structure. Afterward, DXY retraced sharply to the 0.618 Fibonacci level of its major uptrend, signaling a potential corrective phase.
Although the sentiment remains bearish for now, we must consider the possibility of a price reversal from this crucial support zone.

⏳ 4H Time Frame Analysis

Now, moving to the 4-hour time frame, as discussed in the previous analysis, we anticipated a breakdown of 104.235, which indeed played out, hitting our target of 103.398. Currently, the 104.235 level serves as a 4H resistance, while 103.303 acts as a daily support.
These two levels form our main triggers:

• 💚 Long Trigger: Above 104.259 (confirming a potential reversal)
  
• 🔴 Short Trigger: Below 103.303 (aligned with the short-term downtrend)
  

The short trigger has a higher win rate and risk-to-reward ratio since it aligns with the ongoing bearish trend.

💡 Final Thoughts
Thanks for sticking with me through this analysis! I hope your week ahead is profitable and insightful.

Remember, planning and executing trades with clarity is the key to long-term success.

Catch you on the next breakdown! 🚀