Entries for Shorts @ 95.50 96.00 Stop Loss @ 98.00 Take Profit at @ 93.00, 92.00
DXY failing to make any new highs Weakness has been sighted along with some fundamentally bad news. Long term I think it is highly possible that it could go as far as 88.00 but why not reap the rewards on the way. Posting Lower highs, AB was a nice downwards leg and CD is a clone of AB, Structure can be found at the 50% level of the downwards channel but will only be temporary. Good opportunity for pairs aswell.
Broken 20 SMMA which was holding the DXY during its triumph to the top denied at 100 and sailed downwards ever since. Many Technical indicators on a Weekly scale tell us that it is oversold as can be seen with the Bollinger Band Monthly candles were actually outside the band adding to downwards pressure
Reason for choice to go short at these levels, is previous structure 96.00 being a previous major low and support turning into resistance now and 95.50 being a high right in at January the 23rd If entering late or miss this trade wait for a retrace as it cannot just head straight for the target. Goodluck :)
Can you outline how to enter a trade, how much risk to take, and any other confirmations you would look for? I'd love to suggest this chart, but just need a little more clarity. Thanks!
Rennie
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thanks Tim, this is a outlook for the DXY. To enter a trade on this I would be going long on the Euro and Long XXX/DXY depending on the current Price action on the pair. For the management of the trade taking a position size comfortable which for me is 2% stays in my rules. Confirmation for me on this trade would be a fail to make a new high creating a lower high and then downside movement, On that downside movement I would wait for a slight retrace and then create my entry at an appropriate level aiming for about a 1:5 ratio on longer term trades.
Rennie
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so for this I was actually long EURUSD last month, Seeing the DXY weakness and completion of my Pattern I went with trying to find a spot to enter. The green area created a newer high for me to wait for a retrace and then enter. I set a long entry order at 1.09 flat since I found that to be a mental area that would have entries waiting also. I set a 75 pip stop loss at 1.0825 and a take profit at 1.11 as that was a nice R:R and I was happy with that level also, The trade closed at +200 pips exact.
FXSurf
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Great call. Top notch!
Crit_Nasty
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Such a wonderful prediction! It's on point as of 06/11/2015!
Rennie
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photo for the comment above ^
Rennie
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The ABCD pattern also corresponded with a ABCD pattern on DXY which was very bearing