DXY 4H – Liquidity Sweep → Bullish Setup

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DXY 4H – Liquidity Sweep → Bullish SetupU.S. Dollar Currency IndexTVC:DXYKingProTraderThe Dollar Index has just completed a classic liquidity grab + displacement sequence, and price is now reacting inside a key demand zone. We saw a sharp sell-off breaking short-term structure, taking out equal lows (marked $$$). This confirms a sell-side liquidity sweep, which is often a precursor to reversal or continuation higher in bullish contexts. Price is now tapping into a higher timeframe demand zone (green box), aligning with a discount area relative to the recent swing. These Fibonacci retracement levels are drawn from the recent swing high to low and act as potential resistance targets on a bullish move. 🧠 Trade Idea Breakdown Bullish Scenario (Primary Bias): Price holds the demand zone and forms a base Internal structure shift (CHoCH/BOS on lower timeframe) Gradual expansion targeting: 98.55 (0.5) 98.68 (0.618) Potential continuation toward previous highs This aligns with the curved projection, suggesting accumulation before expansion. Short-Term Pullback (Secondary Move): A minor retracement into the 98.4–98.6 region could occur first This would create a lower high / inducement before the real move higher Watch for rejection wicks or bearish inefficiencies filling before continuation ⚠️ Invalidation Clean breakdown and acceptance below 97.60 demand zone Would suggest continuation bearish and failure of current setup