The DXY is trading at an important level. The upper trend line formed near 97 serves as litmus test to where the price action will go... Our bias is towards the downside but only slightly and we will stay agile and flip our bias if proven wrong.
BEAR CASE
Price should see a test of the 97 levels early next week where it should find resistance. If this plays out, we are targeting the bottom of the channel to exit our short trades.
BULL CASE
If price breaks through the trend line with conviction, we will enter a long position to the trend line on pullback.
PS: Control your risk, the macro situation is not out of the woods yet.
BEAR CASE
Price should see a test of the 97 levels early next week where it should find resistance. If this plays out, we are targeting the bottom of the channel to exit our short trades.
BULL CASE
If price breaks through the trend line with conviction, we will enter a long position to the trend line on pullback.
PS: Control your risk, the macro situation is not out of the woods yet.