USD Indx - I still believe in short term USD correction
For more than a week now USD has been trading sideaway in a range, looks like a top consolidation. Meanwhile 4 Hrs break point came higher, and I still believe that with another break attempt it is possible to see some deeper correction.
Daily: MACD is on sell. Slow Stoch is on sell with also some negative divergence to Price action. Short term support is Tenkan Sen at 81,48, but this is a thin support. ADX started to flatten on the top and is relatively too high, DMI lines started to converge. On the daily chart it looks like a rounded top is building here. If it is so, we'll see the wave 4 possibly during next week.
To see what is the break level we have to check the lower timeframe.
4 Hrs: Price is ranging at/above Kumo top, with few penetrations into the Kumo. Both the current and the future Kumo is really thin now, which means with a next selling it won't be difficult to break through. The Price is also in a tightenning triangle, with higher lows, but flat top ard 81,66. The small and short "trendline" is now matches the Kumo too. Defenately 81,40-81,45 is the level to watch.
DMI zig-zag, ADX is very low, but looks like turning up a bit. If ADX can increase with DI- staying above DI+, while Slow Stoch still on sell, that means the next break attempt at 81,40 can be succesfull. 81,27 should be gone as well, but I think as the USD correction has not started for such a long time, when it will, this minor support will not be too strong.
Next question is how deep it will be able to sink in case? Lower supports are 81,00 and 80,80. These should be the targets of the corrective move.
The strategy is the following: Place stop sell orders at 81,40 with initial stop at 81,55-81,60.
p.s.: I am still short from appr. current levels with 0,5 unit, but that was a top hunting idea. I am waiting for the real sell signal to increase position. Remember: this trade will be a counter trend swing trade! The major long term trend will remain still bullish for the USD (until it stays above 80,75).
p.s.2: Gold is very interesting too. I think it could gain further bullish momentum too in line with USD correction. Pls check the link below. I've been long Gold since the buy signal, but it has not yet really started to perform. There we need Kijun break and T/K bullish cross as well for acceleration.
Daily: MACD is on sell. Slow Stoch is on sell with also some negative divergence to Price action. Short term support is Tenkan Sen at 81,48, but this is a thin support. ADX started to flatten on the top and is relatively too high, DMI lines started to converge. On the daily chart it looks like a rounded top is building here. If it is so, we'll see the wave 4 possibly during next week.
To see what is the break level we have to check the lower timeframe.
4 Hrs: Price is ranging at/above Kumo top, with few penetrations into the Kumo. Both the current and the future Kumo is really thin now, which means with a next selling it won't be difficult to break through. The Price is also in a tightenning triangle, with higher lows, but flat top ard 81,66. The small and short "trendline" is now matches the Kumo too. Defenately 81,40-81,45 is the level to watch.
DMI zig-zag, ADX is very low, but looks like turning up a bit. If ADX can increase with DI- staying above DI+, while Slow Stoch still on sell, that means the next break attempt at 81,40 can be succesfull. 81,27 should be gone as well, but I think as the USD correction has not started for such a long time, when it will, this minor support will not be too strong.
Next question is how deep it will be able to sink in case? Lower supports are 81,00 and 80,80. These should be the targets of the corrective move.
The strategy is the following: Place stop sell orders at 81,40 with initial stop at 81,55-81,60.
p.s.: I am still short from appr. current levels with 0,5 unit, but that was a top hunting idea. I am waiting for the real sell signal to increase position. Remember: this trade will be a counter trend swing trade! The major long term trend will remain still bullish for the USD (until it stays above 80,75).
p.s.2: Gold is very interesting too. I think it could gain further bullish momentum too in line with USD correction. Pls check the link below. I've been long Gold since the buy signal, but it has not yet really started to perform. There we need Kijun break and T/K bullish cross as well for acceleration.
