The DXYDXY currency pair has recently experienced a shift in market sentiment, as indicated by its movement into a Bearish Monthly Fibonacci Voltage Gauge (FVG). This suggests a potential downward trend on a longer-term perspective.
Furthermore, the price action has ventured into a High Time Frame (HTF) Fibonacci Voltage Gauge (FVG) within the context of Low Time Frame (LTF) Order Pairing, particularly noticeable on the Weekly Timeframe. This implies a significant confluence of signals across different timeframes, reinforcing the likelihood of sustained bearish momentum.
Despite this, it's noteworthy that price has concurrently entered a Bullish Daily Fibonacci Voltage Gauge (FVG), signaling a potential short-term uptrend. This observation aligns with my analysis indicating bullish sentiment on both the Daily and 4-hour timeframes.
Considering these factors, it is plausible to anticipate a scenario where price may breach the Previous Week's Low (PWL) and gravitate towards a notable 4-hour timeframe imbalance, possibly presenting a discounted opportunity before resuming its upward trajectory.
In terms of liquidity assessment for the week, I'm closely monitoring the Daily Swing Highs, which could serve as pivotal points for price action and liquidity absorption. XAUUSD
Remember. None of this is Financial Advice. These are just my opinions. Feel free to use them to your advantage and/ or share your own opinions in the comment section. What do you think?
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