Dear Traders,
The Dollar Index is extremely hard to read atm. Most of the recent weeks, the price-action was extremely clear and we were able to take a lot of great opportunities from the drop expected from the highest supply zone. For now, let's start at the monthly timeframe, last month looks extremely bearish with the star formation + last month engulfing pattern breaking the long-term trendline formation, for as far we can see the monthly candle of this month, it might just be a re-test of this pattern.
By looking at the weekly, price-action isn't that clear to be honest. The weekly chart is sitting at the weekly 50 EMA which has been respected a lot of times the last 3 times. I personally do not use EMA's on the higher timeframes but in this case if price-action is not that clear I try to see if it makes sense, in this case applying the weekly 50 EMA shows us that we might have a bull trap; indicating that bulls are trying to buy this EMA for the 4th time and might not have the power to sustain their bullish power. IF the bulls fail, a big drop is expected for the Dollar, ligning up with the monthly.
The Daily chart is the one I like to use for details, well based on supply and demand not much is in the cards. The Daily and Weekly Supply area's are higher above 98.30. However, I did see a bearish flag develop, but to take a trade, more bearish price-action needs to develop. So let's be patient and see how the markets are developing during the next weeks.
Best regards,
MNieveld
& The NCFX Team.
The Dollar Index is extremely hard to read atm. Most of the recent weeks, the price-action was extremely clear and we were able to take a lot of great opportunities from the drop expected from the highest supply zone. For now, let's start at the monthly timeframe, last month looks extremely bearish with the star formation + last month engulfing pattern breaking the long-term trendline formation, for as far we can see the monthly candle of this month, it might just be a re-test of this pattern.
By looking at the weekly, price-action isn't that clear to be honest. The weekly chart is sitting at the weekly 50 EMA which has been respected a lot of times the last 3 times. I personally do not use EMA's on the higher timeframes but in this case if price-action is not that clear I try to see if it makes sense, in this case applying the weekly 50 EMA shows us that we might have a bull trap; indicating that bulls are trying to buy this EMA for the 4th time and might not have the power to sustain their bullish power. IF the bulls fail, a big drop is expected for the Dollar, ligning up with the monthly.
The Daily chart is the one I like to use for details, well based on supply and demand not much is in the cards. The Daily and Weekly Supply area's are higher above 98.30. However, I did see a bearish flag develop, but to take a trade, more bearish price-action needs to develop. So let's be patient and see how the markets are developing during the next weeks.
Best regards,
MNieveld
& The NCFX Team.