$DXY is in a giant triangle, we can easily define limits for the range and apex based on the range of the Brexit day.
It's clear momentum favors the downside now, with potential for a time at mode signal to trigger.
A good and logical target is the 93.45 mark, but the weekly signal entails potentially larger downside if we get confirmation during next week.
You can opt for only taking the FX trades, but the index remains certainly tradeable here as well, defining risk as a rally back to 95.90, which is where your stop should be.
Good luck,
Ivan Labrie.
It's clear momentum favors the downside now, with potential for a time at mode signal to trigger.
A good and logical target is the 93.45 mark, but the weekly signal entails potentially larger downside if we get confirmation during next week.
You can opt for only taking the FX trades, but the index remains certainly tradeable here as well, defining risk as a rally back to 95.90, which is where your stop should be.
Good luck,
Ivan Labrie.
Comment:
Right at the Brexit key level, if we drop below soon, it'll accelerate down.
Trade closed manually:
I'm not liking the retracement of post-FOMC action today, I suspect traders will close positions going into the debat and OPEC news so we can probably reenter next week. We will close all FX positions for now. It's better to avoid risk and take a small loss than continue to be exposed to this move. In the long run, it's highly probable that the trades pan out well, but short term distortions in price can cause larger loss than acceptable before the fundamental move pans out.
Comment:
DXY looking extremely bullish now.
(probably due to JPY)
(probably due to JPY)
