The U.S. Dollar Index may be approaching a potential buy zoneHere’s a more detailed version of your DXY trading plan:
DXY Trading Plan**
Buy Zone:**
Enter a buy position around **107.900**, but only after confirming bullish price action (e.g., rejection wicks, strong bullish candles, or signs of support holding firmly).
Targets:**
- First Target:** **108.200** – A key resistance level. Consider partial profit-taking or setting a tighter trailing stop here.
- Third Target:**108.500** – If **108.200** breaks out with strong bullish momentum, hold for this higher resistance level as your final target.
Risk Management:**
- Stop-Loss:** Place your stop-loss slightly below **107.800** to protect against sudden reversals.
- Close Trade:** If the price at **107.900** fails to hold or shows signs of weakness, exit the trade to limit losses.
position Sizing:** Keep your risk-to-reward ratio in check, aiming for at least 1:2 (or higher).
What to Watch For:**
- **Confirmation Signals at 107.900:** Look for bullish candlestick patterns like hammer candles or engulfing patterns.
- **Momentum Around 108.200:** Pay attention to price reactions at this level. If DXY struggles here, consider securing profits or exiting.
- **Market Context:** Keep an eye on macroeconomic data, news, or events impacting the dollar index, as these can shift momentum quickly.
**Additional Tip:**
If the price nears **108.200**, move your stop-loss to breakeven or slightly above **107.900** to secure your position while giving the trade room to breathe.
TVC:DXY
