USD Indx - No follow through yet, it may end up in sideaway
While few days ago I had bullish call on USD, today I started to think about these daily indicators and their setup again.
Obviously the bullish price action did not accelerate. There is no follow through. Price could not break above Daily Kijun Sen, neither above the 4 Hrs kex support/resistance area of 80,32-8,35.
I have the feeling that USD won't be the best friend for trend followers in the coming weeks.
Daily details: Price is above the Kumo, but still below Kijun Sen. Tenkan is below Kijun. Also Chikou Span is still below price candles, and what is more annoying (espec for USD bulls), that it would take really a lot to get a Chikou cross confirmation. Price would need to break and stay above 8,50 to get back in a more robust bullish trend.
DMI/ADX combo also suggests that for a few more days we may see undecision and range trading in this instrument.
Slow Stoch loosing bullish bias, and MACD is a big question, as it did not manage to show a bullish cross either.
Future Kumo components (Senkou A and B) are flat, not pointing anywhere.
4 Hrs: Price still above Kumo, but DMI looks like crossing bearish again. So far it looks like a retest of prev downtrendline, the Kumo and the Kijun Sen. Maybe based on 4 Hrs chart alone it worths to try a long from 79,96 -80,04 with a stop below 79,85. But again looking at the Daily details, I have some doubts regarding this long trade idea.
If USD Indx can not manage to break decisively above the key resistance (80,35) in the next 3 days, then with a good chance price will enter the Daily Kumo. That means it will start to trade sideaway in a range, and also means it will be very difficult to get any good signals on the lower 4 Hrs chart. Zig-zag-zig-zag. Some like it, I don't.
All in all I am still bullish biased on USD, but it may be frustrating for a while to hold longs.
Obviously the bullish price action did not accelerate. There is no follow through. Price could not break above Daily Kijun Sen, neither above the 4 Hrs kex support/resistance area of 80,32-8,35.
I have the feeling that USD won't be the best friend for trend followers in the coming weeks.
Daily details: Price is above the Kumo, but still below Kijun Sen. Tenkan is below Kijun. Also Chikou Span is still below price candles, and what is more annoying (espec for USD bulls), that it would take really a lot to get a Chikou cross confirmation. Price would need to break and stay above 8,50 to get back in a more robust bullish trend.
DMI/ADX combo also suggests that for a few more days we may see undecision and range trading in this instrument.
Slow Stoch loosing bullish bias, and MACD is a big question, as it did not manage to show a bullish cross either.
Future Kumo components (Senkou A and B) are flat, not pointing anywhere.
4 Hrs: Price still above Kumo, but DMI looks like crossing bearish again. So far it looks like a retest of prev downtrendline, the Kumo and the Kijun Sen. Maybe based on 4 Hrs chart alone it worths to try a long from 79,96 -80,04 with a stop below 79,85. But again looking at the Daily details, I have some doubts regarding this long trade idea.
If USD Indx can not manage to break decisively above the key resistance (80,35) in the next 3 days, then with a good chance price will enter the Daily Kumo. That means it will start to trade sideaway in a range, and also means it will be very difficult to get any good signals on the lower 4 Hrs chart. Zig-zag-zig-zag. Some like it, I don't.
All in all I am still bullish biased on USD, but it may be frustrating for a while to hold longs.
