The USD Index has been on a steady uptrend since mid July and now looks to be forming a typical retail pattern – the Bull Flag.
If we look back to the equal lows at the start of the year we see price push below, drawing on sell side liquidity and then reversing higher.
The next level I expect price to draw on is between the next Daily Swing High (DSH) and the Daily FVG marked above.
Price is currently at an area of interest in the form of a Bullish Order Block so I am watching carefully for a reversal to the upside.
If we break below and continue down, we should see another rally in the crypto market. Additionally, if we break out of this Bull Flag and continue up then the crypto market should see a much needed correction.
The DXY is a great chart to watch as it usually experiences an inverse correlation to the crypto market.
The USD Index has been on a steady uptrend since mid July and now looks to be forming a typical retail pattern – the Bull Flag.
If we look back to the equal lows at the start of the year we see price push below, drawing on sell side liquidity and then reversing higher.
The next level I expect price to draw on is between the next Daily Swing High (DSH) and the Daily FVG marked above.
Price is currently at an area of interest in the form of a Bullish Order Block so I am watching carefully for a reversal to the upside.
If we break below and continue down, we should see another rally in the crypto market. Additionally, if we break out of this Bull Flag and continue up then the crypto market should see a much needed correction.
The DXY is a great chart to watch as it usually experiences an inverse correlation to the crypto market.