DXY - Mixed on multi time frames. Short term paue or pull back
Last sell USD idea worked very well. The correction send Price down to important supp/res zone. Now we have kind of mixed picture.
Weekly:
- Ichimoku setup is still long term bullish, but the momentum lost a lot of its power. Price is trading between Tenkan Sen and Kijun Sen now. First important support is ard 94,00 (Kijun Sen +/-)
- Heikin Ashi candle had a long red body last week and a long wick with its low almost touching 94,00. haDelta/SMA3 reached an extreme low read. This means the selling pressure was really heavy. This week has just started, but given the low of last week I think there is a chance we will see some ease in selling pressure in coming days. Watch haDelta/SMA3 if it can hold the cross up and get close to zero line.
- From here it is a bit hard to tell wether we'll see range trading between Tenkan and Kijun with increased volatility, with short term bullish resumption, or if the correction will accelerate further. I think the first has slightly bigger chance and that 94,00 support should hold well for now.
Daily:
- One could say the Ichimoku picture has changed to bearish, but you must not forget something: for a bearish reversal, and valid bearish Kumo breakout Price must make a lower low below the previous important supp/ress, which is ard 93,90. Until then we can call the Ichimoku picture bearish biased, but not yet confirmed bearish trending.
- Please note also that Chikou Span is facing a massive resistance with a thick past Kumo below it.
- Heikin Ashi candle and its quantification haDelta/SMA3 has already gave an aóearly signal last friday about a possible pause or reversal of the short term bearish move. Today we may have a confirming candle: if it closes green or doji, then most likely we'll see more buying in coming days, and Price to retest 96,50-97,00 area again.
All together I think we'll see a reaction buying now to retest the daily Kumo and the shorter averages (Tenkan and Kijun). What will hapen later I don't know, and I don't even want to predict... as no one is able to predict, just to guess. But as usual, we'll have to watch price action and Heikin Ashi signals at the important supp/res levels, so ard 96,50-97,00.
I opened small long DXY position this morning, with 1:2 possible risk reward entry, initial tgt 96,65.
Weekly:
- Ichimoku setup is still long term bullish, but the momentum lost a lot of its power. Price is trading between Tenkan Sen and Kijun Sen now. First important support is ard 94,00 (Kijun Sen +/-)
- Heikin Ashi candle had a long red body last week and a long wick with its low almost touching 94,00. haDelta/SMA3 reached an extreme low read. This means the selling pressure was really heavy. This week has just started, but given the low of last week I think there is a chance we will see some ease in selling pressure in coming days. Watch haDelta/SMA3 if it can hold the cross up and get close to zero line.
- From here it is a bit hard to tell wether we'll see range trading between Tenkan and Kijun with increased volatility, with short term bullish resumption, or if the correction will accelerate further. I think the first has slightly bigger chance and that 94,00 support should hold well for now.
Daily:
- One could say the Ichimoku picture has changed to bearish, but you must not forget something: for a bearish reversal, and valid bearish Kumo breakout Price must make a lower low below the previous important supp/ress, which is ard 93,90. Until then we can call the Ichimoku picture bearish biased, but not yet confirmed bearish trending.
- Please note also that Chikou Span is facing a massive resistance with a thick past Kumo below it.
- Heikin Ashi candle and its quantification haDelta/SMA3 has already gave an aóearly signal last friday about a possible pause or reversal of the short term bearish move. Today we may have a confirming candle: if it closes green or doji, then most likely we'll see more buying in coming days, and Price to retest 96,50-97,00 area again.
All together I think we'll see a reaction buying now to retest the daily Kumo and the shorter averages (Tenkan and Kijun). What will hapen later I don't know, and I don't even want to predict... as no one is able to predict, just to guess. But as usual, we'll have to watch price action and Heikin Ashi signals at the important supp/res levels, so ard 96,50-97,00.
I opened small long DXY position this morning, with 1:2 possible risk reward entry, initial tgt 96,65.
