DXY is currently trading at $99.28 on the 2h timeframe. The price respected the blue ascending channel from May mid lows with green continuation candles, subsequently crossing through the red 50 MA at $98.90. The price continues to print higher highs and higher lows and has bullish engulfing bodies forming near $99.00 support, supporting price upside. RSI is above 55, suggesting good momentum, but still not overbought. The price is rejecting the white descending trendline.
Next targets based on Fib extensions are $99.41, 99.51, the next resistance level. Volume profile suggests that $98.97 is good support with buyers being dominant. The price structure is bullish as price trades above $98.97 and is riding cleanly in a breakout channel on the way to the $99.51, 99.73 area.
Trade idea: Buy $99.28, target $99.51, stop $98.97.
