We are at a point in the market where it must decide about the direction of the trend before we could make a decision to either go short or go long. DXY was pounding a yearly high when Flash services PMI came out, not so much in favor of USD, yesterday. Hence, we witnessed a bounce from the yearly high. Now there are two possibilities we must consider before we can decide further about the strength of the USD in the market:
1- Yearly high breaks at 109.24 further contributing to higher targets and more strength to USD
2- The support at 104.6 break to confirm double tops and we can be sure about lower targets
Unless one of these possibilities come out to realize we are unsure about the direction of the DXY.
Now, I realize that the Monthly shooting star for the month of July has been annulled because it has been completely retraced as of yesterday but I would still like to see the resistance broken before I can agree with the higher targets.
Best of Luck, Happy trading and Happier profits :)
1- Yearly high breaks at 109.24 further contributing to higher targets and more strength to USD
2- The support at 104.6 break to confirm double tops and we can be sure about lower targets
Unless one of these possibilities come out to realize we are unsure about the direction of the DXY.
Now, I realize that the Monthly shooting star for the month of July has been annulled because it has been completely retraced as of yesterday but I would still like to see the resistance broken before I can agree with the higher targets.
Best of Luck, Happy trading and Happier profits :)
Trade closed: target reached:
Higher target zone achieved
