Dollar Pairs Reversal Set Ups: DXY, EURUSD, GBPUSD, USDJPY
Dollar pairs have been in a constant trend with multiple swings, and we are now seeing some interesting signs of a potential reversal.
I preface by saying this is a trade idea. I have written about why the Dollar will likely go higher, and what the Russians and Chinese are really doing in order to prop the Dollar up. Posted below.
We are hearing about the repo events which are now daily injections of money to keep the system propped so be wary of this.
Let us start with the EURUSD. On the 4 hour chart, we had multiple higher lows and higher highs until we hit a resistance/flip zone. From here we stalled and recently, we broke below the previous higher swing thereby nullifying the uptrend. We had a very strong close as well. The only thing I do not like is we do not have any pattern here. If you follow my work, I like to see a pattern to add to our probabilities. However, you can see that we have made our first lower high.
Target is 1.1040.
Let us look at the inverse of the EURUSD, the DXY:
DXY also in a prolonged trend which hit a support/flip zone. From here we could be potentially making our first higher low, but this is NOT confirmed. We want to see the previous lower high break to nullify the downtrend. We are currently testing this area here at 97.70.
If we break and close above, then we can see the 98.20 zone hit.
GBPUSD hit the resistance/flip zone of 1.3000. We are now showing what appears to be an exhaustion of the uptrend, however this trend is not nullified yet. We must break and close below 1.2835 zone. It appears we are making our first lower high, but it will not be confirmed until we make lower lows.
Target zone would be 1.2670.
Finally, USDJPY:
It is a trade idea I have already spoken about on my page. The set up is still valid. We are awaiting the break and close below 108.35.
Yes NZDUSD does look appealing too. Many like the double top pattern on the 4 hour, however I think it is already moving, and these ideas are ones we may act on rather soon if they get triggered.
I preface by saying this is a trade idea. I have written about why the Dollar will likely go higher, and what the Russians and Chinese are really doing in order to prop the Dollar up. Posted below.
We are hearing about the repo events which are now daily injections of money to keep the system propped so be wary of this.
Let us start with the EURUSD. On the 4 hour chart, we had multiple higher lows and higher highs until we hit a resistance/flip zone. From here we stalled and recently, we broke below the previous higher swing thereby nullifying the uptrend. We had a very strong close as well. The only thing I do not like is we do not have any pattern here. If you follow my work, I like to see a pattern to add to our probabilities. However, you can see that we have made our first lower high.
Target is 1.1040.
Let us look at the inverse of the EURUSD, the DXY:
DXY also in a prolonged trend which hit a support/flip zone. From here we could be potentially making our first higher low, but this is NOT confirmed. We want to see the previous lower high break to nullify the downtrend. We are currently testing this area here at 97.70.
If we break and close above, then we can see the 98.20 zone hit.
GBPUSD hit the resistance/flip zone of 1.3000. We are now showing what appears to be an exhaustion of the uptrend, however this trend is not nullified yet. We must break and close below 1.2835 zone. It appears we are making our first lower high, but it will not be confirmed until we make lower lows.
Target zone would be 1.2670.
Finally, USDJPY:
It is a trade idea I have already spoken about on my page. The set up is still valid. We are awaiting the break and close below 108.35.
Yes NZDUSD does look appealing too. Many like the double top pattern on the 4 hour, however I think it is already moving, and these ideas are ones we may act on rather soon if they get triggered.
