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Exercise-Discipline
May 9, 2017 1:32 PM

Dollar momentum fading, bearish divergence Short

TVC:DXY60
U.S. Dollar Currency IndexTVC

Description

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Bullish momentum fading.

Bearish divergence.

This is bullish for EURUSD, bearish for DXY.

This is in line with fundamentals, with a June rate hike almost fully priced in to the market.

Comment

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Perfect
dxyshortDXYdollardollarshortdxyindex
Comments
patterntrader
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Excellent trade setup. If this happens, then there is a chance of making some pips. Thank you for sharing. Keep posting.
IgorMichalko
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DXY still trying to close the gap first . . . EUR GBP overbought . . .
Exercise-Discipline
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@IgorMichalko, A gap doesn't always close :)
IgorMichalko
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@TanayUK, that's right . But EURUSD doesn't close it too . . Optimism about Macron win is priced in too . . USD has some room yet . Divergence in Eurozone and US . . . has to be take in mind . . But , you can be right , maybe wallstreet shake things up and turn USD down . . As they like to do
Exercise-Discipline
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@IgorMichalko, good points mate. I agree.

But I think the divergence between Eurozone and US is fading.

I think this move down in EURUSD was fast money 'sell the fact' move by hedge funds.

Macron win will encourage longer term flows into Eurozone - real money flows.

Draghi will be comfortable to taper QE now that political risk is reduced.

Eurozone data is very good, inflation pretty much at target.
IgorMichalko
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@TanayUK, I agree of course . . about hedge funds and fast money you are right .

Divergence stand still and will be some time in terms of rates , but fundamentally yes , the difference are closing . . good point
IgorMichalko
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@TanayUK, we can see retest of 1.1025 first . . . I am in wait and see mode . . but holding long eurusd at 1.0880 and short from monday opening 1.1015
Exercise-Discipline
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@IgorMichalko, Brilliant way to play it mate, well done.
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