DXY (Long) - Temporary bottom for the dollar

14 Apr 2023

• The dollar has fallen significantly on the back of falling interest rates and the bank crisis
  
• Currently sitting at a crucial support going back several years
  
• My thesis is a temporary bounce up to the 50SMA on the weekly
  
• Bullish engulfing candle on the daily suggesting a temporary reversal
  
• The yields on bond have also slightly reversed, hitting a 50SMA on the weekly; yields and the dollar collerate
  
• This strategy could be also used for any of the USD pairs of your choice, whichever one shows the more strength relative to the dollar
  
• It is a short-term trade with very good risk/reward
• I would use the support line as a stop-loss
  

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