The weekly supply zone no longer exists because DXY has just hit its highs. Therefore, if a rebound is successful in the daily demand zone, it can propagate as a daily upward wave. Then it will rise above the monthly supply zone, drawing a daily correction trend line, followed by an upward wave.
However, if the daily uptrend propagation fails, fails to go higher and stays below this line, it is more likely to turn into a bearish wave rather than an uptrend. If so, you might be able to set a downward target for the monthly demand zone.
However, if the daily uptrend propagation fails, fails to go higher and stays below this line, it is more likely to turn into a bearish wave rather than an uptrend. If so, you might be able to set a downward target for the monthly demand zone.
Note
The analysis above is when the 4-hour rising wave stops and a-b-c retracement occurs.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.