EURUSD - CaseStudy ( Divergence )

Welcome to the second case study, here we go over DXY and EU and discuss the nimble threading with divergence.

————-- EURUSD - Case study, with DXY


DXY on m15


Both grab liquidity, and take opposing resting liquidity. EU takes a liquidity grab on BSL, whilst DXY does the inverse and takes out SSL.

DXY on M15 with MS


EU on M15 with MS

This then obviously also means that if we close back into the range we can mark the market shifts as such.

However, if you look a lot closer, you can see that we have divergence between the two.

When EU took out SSL it created another lower low, whilst DXY failed to print a higher high, it printed a lower high, and then somewhat of equal highs after that.


The overall pictures changes quite quickly then, take a step back, and go back to a neutral bias. You will see how price will run into specific PDA;s and then run off chain.

DXY complete picture with divergence reversal

EU complete picture with divergence reversal.

Complete gem :

————-- EURUSD - Case study, with DXY


DXY on m15


Both grab liquidity, and take opposing resting liquidity. EU takes a liquidity grab on BSL, whilst DXY does the inverse and takes out SSL.

DXY on M15 with MS


EU on M15 with MS

This then obviously also means that if we close back into the range we can mark the market shifts as such.

However, if you look a lot closer, you can see that we have divergence between the two.

When EU took out SSL it created another lower low, whilst DXY failed to print a higher high, it printed a lower high, and then somewhat of equal highs after that.


The overall pictures changes quite quickly then, take a step back, and go back to a neutral bias. You will see how price will run into specific PDA;s and then run off chain.

DXY complete picture with divergence reversal

EU complete picture with divergence reversal.

Complete gem :

————-- EURUSD - Case study, with DXY


DXY on m15


Both grab liquidity, and take opposing resting liquidity. EU takes a liquidity grab on BSL, whilst DXY does the inverse and takes out SSL.

DXY on M15 with MS


EU on M15 with MS

This then obviously also means that if we close back into the range we can mark the market shifts as such.

However, if you look a lot closer, you can see that we have divergence between the two.

When EU took out SSL it created another lower low, whilst DXY failed to print a higher high, it printed a lower high, and then somewhat of equal highs after that.


The overall pictures changes quite quickly then, take a step back, and go back to a neutral bias. You will see how price will run into specific PDA;s and then run off chain.

DXY complete picture with divergence reversal

EU complete picture with divergence reversal.

Complete gem :

Complete Lesson