DXY analysis 29/11/2025:
We have the weekly and daily chart of DXY presented. Last week we were bullish on DXY as long as price was supported in the support zone. If we look at the daily chart first, we have lost the daily chart support. So on a 4 hour basis and daily basis, DXY price action is bearish. The weekly however is still bullish. If you see the weekly chart, we have inside bar. We have liquidity in the form of equal lows in the weekly support. This could be the possible target. We will be watching very closely the price action on DXY after it takes out the liquidity. There is still a chance of price rejecting the support and move higher. As long as we are supported by the weekly support, we will not turn bearish on DXY. we are on the sidelines and waiting for the market makers to reveal their hand.
For a bullish bias the price should find support on the weekly zone and price should close above it on a daily basis. If price takes out the equal lows liquidity and immediately starts moving higher and closes above the weekly support, we would consider that as a liquidity purge for a bullish move up.
If the price loses the weekly support and closes below it on a daily basis, then we are clearly bearish and the price will quickly fall towards the lows of the recent move.
Although we have conflicting biases in DXY ( weekly positive, daily bearish) we have a clear positive bias on USDJPY. If we see the weekly chart, we have an inside bar again but price closed at the top of the range. We think that the most likely scenario would be a raid of last week’s low and a move higher. So we will be waiting for this to happen. Some times the market makers might move the market higher without going into our buy zone to trap longs. We have to be on our guard for this scenario. we take smaller long positions in these scenarios with tight stoploss and enter again in the buyzone. Our target is still Q1 high. since the price is very close to it, there is a good chance that we can take out this Q1 high. We will only become bearish is price closes below both the buyzones.
Disclaimer: Analysis done in good faith and is for educational purposes only. Please do own research and seek advice from an investment professional.
