DXY long term my bias is short due to multiple rejections of the 97.50 resistance area. From here out I see a couple scenarios playing out for the dollar as we come up to NFP. We could reject the golden fib which we are sitting at right now and reverse to 96.40 support we will either break or bounce. If not I see further dollar strength till NFP for one more test near the 97.50 psychological level. This could line up for a NFP fakeout(fake break to the upside) and melt. I will be monitoring this setup looking for an entry and updating throughout the month.
Comment:
DXY momentum has slowed up at the 78.6 fib resistance we have NFP on friday and Dollar strength could continue to rise slightly into next fib zone before falling. Will continue to update on this trade throughout the week as we get closer to NFP
Trade active:
DXY shorts active as of yesterday night also have taken positions against the USD in accordance with this analysis. Short term target for DXY 96.40-96.60.
Order cancelled:
Trade closed in profit will be looking for a slight pull back on dxy to fib resistance before going lower next week after bank holiday. Will update next week
Comment:
DXY broke resistance on up beat housing data. ATH in Home sales since 2008. Seems that 99 or 100 may be our psychological area before melting. The dollar and stock market can only be propped up for so long
