FX.co ★ DXY Potential For Bullish Continuation | 22nd September 2022

On the H4, price is still respecting the bullish channel and has failed to break the first support- we are bullish bias. Price has broken the previous high to test at the first resistance at 111.635 where the 127.2% extension sits. If bullish momentum continues, it should bring price toward the second resistance at 112.493 where the 78.6% projection sits. Alternatively, it could pull back to test the first support at 110.698 where the previous swing high sits then the second support at 109.323 where the 78.6% projection and previous swing high sits

Trading Recommendation

Entry: 111.635

Reason for Entry:

Breakout buy entry, 127.2% extension

Take Profit: 112.493

Reason for Take Profit:78.6% projectionStop Loss: 110.698

Reason for Stop Loss:

Previous swing high