From TradingView · · 1m 10s
Two ways the dollar breaks next
A trader waits out a murky inflation print and maps the two paths the dollar index can take from here.
In brief
A trader waits out a murky inflation print and maps the two paths the dollar index can take from here. When the data gives no edge, define both scenarios in advance and let price pick one. Originally reported by TradingView.
Inflation gave no answer
Last week's inflation numbers left the dollar index without a clear direction, so the trader is sitting out rather than forcing a position.
“Since inflation numbers last week have not given any clear direction yet it's still a waiting game for myself.”
Waiting is the position
No setup means no trade. The plan is to stay flat until price picks a side instead of guessing which way the dollar resolves.
Bears still hold the 4h
Bearish orderflow on the 4-hour chart is currently in control. Everything that follows hinges on whether that control holds or breaks.
Scenario one, lower
Price respects the bearish 4h orderflow and takes out the 4h fractal low a second time, opening a move down toward the yearly open level.
“breaks the 4h fractal low a second time so we can trade price towards the yearly open level”
Scenario two, higher
Price breaks the bearish 4h orderflow instead, carving out a fresh demand zone and turning the bias up.
The target up at 100.083
If the demand zone forms, the upside destination is the major daily liquidity resting at 100.083.
“we trade price up towards the major daily liquidity laying at 100.083”
The key point
When the data gives no edge, define both scenarios in advance and let price pick one.
