All primary pairs and commodities are reflected by the DXY. Price has been dropping steadily and needs to start showing some slowing in momentum. I think we have some more down the potential for another move up. Look left and there is no areas of support until about 94.5 on the LTF. I am a strong believer in trend lines so look for a reversal or bounce at the green daily and the orange weekly TL. The speed in which we get there will determine where the reversal occurs. Watch the 94 area for remnants of a major gap.
In the interim look for gold and USD pairs to benefit until the turn.
In the interim look for gold and USD pairs to benefit until the turn.
Comment:
The move up is not looking very impulsive and I am still expecting a "z" wave back to the TL and possibly beyond on the HTF. If price continues up I would take a short at the resistance level in the chart below.
Comment:
NFP you gotta love it or hate it no middle-ground.
On the LTF we have the makings of an exaggerated a-b-c pattern however big moves like this skew the trend lines.
We have popped into the shorting zone I had put in my last update. Now we must see what kind of price action occurs. I would like a break of the green daily TL to short but that is giving up a lot of pips. I will go to the LTF and watch for a flag or correction and look shorting opportunity.
Another thing to watch if you are a H&S pattern watcher it looks like a classic (so good I don't have to point it out) The blue rectangles indicate the minimum rise which is between the .618 and .707
Be careful there is a little 1 hr support area at the bottom of my 4 hr resistance zone. Quite often we get a pull back and then another move up.
On the LTF we have the makings of an exaggerated a-b-c pattern however big moves like this skew the trend lines.
We have popped into the shorting zone I had put in my last update. Now we must see what kind of price action occurs. I would like a break of the green daily TL to short but that is giving up a lot of pips. I will go to the LTF and watch for a flag or correction and look shorting opportunity.
Another thing to watch if you are a H&S pattern watcher it looks like a classic (so good I don't have to point it out) The blue rectangles indicate the minimum rise which is between the .618 and .707
Be careful there is a little 1 hr support area at the bottom of my 4 hr resistance zone. Quite often we get a pull back and then another move up.
Comment:
Comment:
Comment:
The original idea is still in play only taking a longer route. The secondary idea short before the big move up worked as planned and hit its target.
Trade closed: target reached:
The initial down move was not as strong as I anticipated. However the short on the revised look worked perfectly.
