DXY (Dollar Index) has been on a steady climb for a couple months. Price action is now getting very close to a level where some resistance and potentially a pivot can be expected.
The zone highlighted on the chart is of interest for a few reasons. First being that it has been a critical pivot point in the past, shown by each red arrow where price was rejected or supported. Second reason being the area shown by the blue circle, this is a single day of price action where price move very quickly. Many traders consider these behaviors to create imbalances in the price action and often times price will revisit these levels to close that imbalance.
And the 3rd reason being that this level overlaps nicely with the Fib golden pocket, as shown below.
DXY (Dollar Index) has been on a steady climb for a couple months. Price action is now getting very close to a level where some resistance and potentially a pivot can be expected.
The zone highlighted on the chart is of interest for a few reasons. First being that it has been a critical pivot point in the past, shown by each red arrow where price was rejected or supported. Second reason being the area shown by the blue circle, this is a single day of price action where price move very quickly. Many traders consider these behaviors to create imbalances in the price action and often times price will revisit these levels to close that imbalance.
And the 3rd reason being that this level overlaps nicely with the Fib golden pocket, as shown below.