Dear Traders,
The Dollar is sitting at a major resistance point! With price already rejecting the trendline shown on the chart and the 4hour star formation, the drop might start already. However, we can still see one more push higher before the reversal. Personally, looking for GBP/USD longs for a pullback play and potential EUR/USD longs also.
Confluence stack; Quarterly & Monthly Supply (Weak Area, Higher is better), Weekly + Daily supply level, several trendline third touches in the supply stack combined with several fibs.
I have been sharing my views on this for a while now, it is important to be patient and keep your eyes on the news incoming Friday.
Best regards,
The NCFX Team.
The Dollar is sitting at a major resistance point! With price already rejecting the trendline shown on the chart and the 4hour star formation, the drop might start already. However, we can still see one more push higher before the reversal. Personally, looking for GBP/USD longs for a pullback play and potential EUR/USD longs also.
Confluence stack; Quarterly & Monthly Supply (Weak Area, Higher is better), Weekly + Daily supply level, several trendline third touches in the supply stack combined with several fibs.
I have been sharing my views on this for a while now, it is important to be patient and keep your eyes on the news incoming Friday.
Best regards,
The NCFX Team.
Comment:
Price on the daily timeframe is moving very correctively to the downside, if bearish momentum is not picked up soon, price might go higher and re-test the 99.20 price area.
The weekly chart looks really bearish on the Dollar Index, next week candle close will be interesting and might close as a bearish star formation; 'Bullish engulfing, high-test and a bearish engulfing'.
If you missed the short opportunity, wait for a clean pullback to around 99.20 and wait for intra-day bearish confirmation before taking it short. Also mondays are often creating fake moves, so a bullish monday would be favorable to trap people at the wrong side of the market at the start of the week.
The weekly chart looks really bearish on the Dollar Index, next week candle close will be interesting and might close as a bearish star formation; 'Bullish engulfing, high-test and a bearish engulfing'.
If you missed the short opportunity, wait for a clean pullback to around 99.20 and wait for intra-day bearish confirmation before taking it short. Also mondays are often creating fake moves, so a bullish monday would be favorable to trap people at the wrong side of the market at the start of the week.
I am currently positioned in Dollar shorts from the first of October and are looking to ride this potential bearish run towards the first target at the daily .618 fibonacci.
Be careful if you're not positioned yet, NFP might push the Dollar to new highs.