N E U T R A L DAILY BIAS.. INVERSE H/S PATTERN ON THE 4 HOUR
DAILY SWING TRADE PERSPECTIVE - IM NEUTRAL AS THE REWARD TO RISK RATIO IS NO GOOD UNTIL WE GET A DEFINITE DIRECTIONAL MOVE BEYOND THE CEILING OF APPROXIMATELY 95.00 LEVEL
ALTERNATIVELY A BREAK BELOW THE UPWARDS SUPPORTIVE (T) LINE AND THE DAILY 50 EMA. WE WANT A BREAK AND RETEST OF THIS DAILY (T) LINE AND THE 50 EMA ACTING AS DYNAMIC RESISTANCE, MOVING PRICE LOWER.
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4HR - CHART IS SHOWING AN INVERSE H/S PATTERN WHICH MAY BE JUST WHAT IS NEEDED TO BREAK THE CURRENT CEILING ON PRICE.
I SUSPECT A DOUBLE BOTTOM AT THE PURPLE LINE MIGHT BE THE CATALYST THAT PLAYS INTO THE HEAD AND SHOLUDER AND A MOVE TO HIGHER PRICES.
CAUTION - IM NOT SURE A RETEST OF THE 95.00 LEVEL WOULD PRESENT ITSELF FOR SWING TRADERS TO ENTER ON IF PRICE RALLIES HIGHER.
ITS A PRETTY OBVIOUS LEVEL TO BREAK AND DAY TRADERS WOULD TAKE ADVANTAGE OF IT BREAKING, PILING IN TO SEND PRICE HIGHER, POSSIBLY LEAVING SWING TRADERS BEHIND.
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SWING TRADING PERSPECTIVE IM ON THE SIDE LINE UNTIL I SEE A DIRECTION DECIDED UPON BY THE DAY TRADERS.
THE HIGHER TIME FRAMES HOLD MORE SWAY OVER PRICE IN THE END.
ALTERNATIVELY A BREAK BELOW THE UPWARDS SUPPORTIVE (T) LINE AND THE DAILY 50 EMA. WE WANT A BREAK AND RETEST OF THIS DAILY (T) LINE AND THE 50 EMA ACTING AS DYNAMIC RESISTANCE, MOVING PRICE LOWER.
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4HR - CHART IS SHOWING AN INVERSE H/S PATTERN WHICH MAY BE JUST WHAT IS NEEDED TO BREAK THE CURRENT CEILING ON PRICE.
I SUSPECT A DOUBLE BOTTOM AT THE PURPLE LINE MIGHT BE THE CATALYST THAT PLAYS INTO THE HEAD AND SHOLUDER AND A MOVE TO HIGHER PRICES.
CAUTION - IM NOT SURE A RETEST OF THE 95.00 LEVEL WOULD PRESENT ITSELF FOR SWING TRADERS TO ENTER ON IF PRICE RALLIES HIGHER.
ITS A PRETTY OBVIOUS LEVEL TO BREAK AND DAY TRADERS WOULD TAKE ADVANTAGE OF IT BREAKING, PILING IN TO SEND PRICE HIGHER, POSSIBLY LEAVING SWING TRADERS BEHIND.
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SWING TRADING PERSPECTIVE IM ON THE SIDE LINE UNTIL I SEE A DIRECTION DECIDED UPON BY THE DAY TRADERS.
THE HIGHER TIME FRAMES HOLD MORE SWAY OVER PRICE IN THE END.
Comment:
Another touch of the upwards T line. Longer term the USD will break down i think room left for a move higher trapping bulls before a break to the down side occurs.
Comment:
it looks like DXY is trying to break down, still to early yet to enter, consolidating/creeping slowly towards falling below the trend line. still need some structure to develop. no entry yet
Comment:
view in conjunction with the EURO USD index idea - last posted idea of mine.
Comment:
not a confirmation yet that the DXY is breaking down we need a definite break lower and retest. obvious structure
Comment:
the 50 EMA on the daily is looking like possible dynamic support as shown on the previous low on the daily chart. This needs to break on the daily before we feel better about starting to long other currencies against the USD
Comment:
1HR, 4 HR AND DAILY SHOWING THE SAME BIAS atleast
Comment:
adjust the trend line to a more shallower angle. on the 4 Hr the 3 obvious most recent swing lows. Line still supporting price. still neutral on the DXY
THE PURPLE LINE - IS THE LEVEL THAT OUR SHOULDERS SIT AT, EFFECTIVELY NOW HAVING A DOUBLE BOTTOM FOR OUR RIGHT SHOULDER.
THE PRICE DROPPING TO THE DAILY UPWARDS (T) LINE AND THE SHOULDER LEVEL, COINCIDES WITH THE START OF THE WEEKEND, TRADERS CLOSING DOWN POSITIONS AT THE END OF THE WEEK.
WE NOW HAVE A PERFECT SPOT FOR LONG ENTRIES TO COMMENCE AND CLIMB PRICE HIGHER, AGAIN AT THE START OF NEXT WEEK.
THIS COULD ALSO AID IN AN INCREASE IN MOMENTUM TAKING PLACE, AND PRICE BREAKING THE 95.00 LEVEL.
AGAIN STILL ON THE SIDE LINES FROM A SWING TRADING PERSPECTIVE