General analysis
The Dollar Index continues its rally higher, with price action showing weakness on the daily and hourly time frames.
Chart Analysis
On November 11, 2024, the dollar index rose by 0.50% and is currently trending up within a channel. The price could face a strong rejection at the 105.77 level as the previous high will act as resistance.
On the daily chart, the price broke a flag pattern until November 6, 2024 and continued its rally. Currently, the price could face a rejection at the 105.77 level, which a zone of strong resistance. The price has risen without stopping. However, it needs to close above the 105.77 level on the daily chart to continue the uptrend.
On the 1-hour time frame, a strong ascending channel is seen, creating key support and resistance levels. If the price fails to stay within the channel and suffers a downside breakout, selling pressure could push the price towards the 104.80 level.
On the 15-minute time frame, there is strong momentum for the uptrend within the channel structure. Compared to the hourly and daily periods, the 15-minute period shows more strength.
Generally, on higher time frames, the price has risen rapidly without forming significant swings or pauses, weakening the trend. In contrast, the 15-minute time frame has shown adequate reversals and enough pauses, making it safer for short-term traders.
Entry triggers
For possible entries, these are the triggers to consider:
- If the price on the 15-minute time frame breaks the support trend line and stays below it, sellers can consider entering the trade with a stop loss above the previous high and target levels at 105.30 and 104.90, based on a trailing stop.
- On the daily chart, if the price closes above the level of 105.77, positional buyers can consider entering the trade with a stop loss below the low of the previous candle, with targets at 106.31 and 107.03 consecutively.
- On the 1-hour time frame, if the price breaks the support trend line and continues below it, sellers can consider entering the trade with a stop loss above the previous high and a target of 104.80 .
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