JICPT| USD approaching previous high with bull flag pattern!
Hello everyone. The dollar index has been up by approximately 4% since June 1st from 89.55 to 93.20, with the support of US economy recovery and fear of tapering.
If we look at the chart of gold as below, we can also clear see that the rebound of gold has been terminated and it fell from that day. So, the performance of gold would be mainly attributed to dollar index(there're other factors to influence gold as well). That reminds us the importance of correlation again.
So, from the dollar daily chart, I can see it's approaching previous high. Technically, it will cause some trouble for the bullish buyers. I marked two possible path. One is go-up with no hesitation, whilst the other one is pullback-and-go. I personally prefer to the second one. The bull flag pattern looks nice for pull backers to long at the neck level.
US 10Y yield and the dollar index is always the top two on my watchin list. The movement of the two will affect the global financial markets.
What I can induce from the dollar index is as below:
1. if dollar index got trouble next week, gold is likely to challenge previous high of 1839. It will be confluence with my gold setup below. The link is also provided for reference.
2. I might get some nice long setups on EURUSD, GBPUSD given the weakness of USD next week. Of course, the setup must be align with my core trading strategy.
China is the first major economy to recover from the pandemic. I saw how strong the CHN/CNY was against the dollar. Now, it's the US turn. I'm bullish of the dollar index in the mid-term, say for the rest of the year.
Do give me a like if you're with mine. Thanks for your support.
If we look at the chart of gold as below, we can also clear see that the rebound of gold has been terminated and it fell from that day. So, the performance of gold would be mainly attributed to dollar index(there're other factors to influence gold as well). That reminds us the importance of correlation again.
So, from the dollar daily chart, I can see it's approaching previous high. Technically, it will cause some trouble for the bullish buyers. I marked two possible path. One is go-up with no hesitation, whilst the other one is pullback-and-go. I personally prefer to the second one. The bull flag pattern looks nice for pull backers to long at the neck level.
US 10Y yield and the dollar index is always the top two on my watchin list. The movement of the two will affect the global financial markets.
What I can induce from the dollar index is as below:
1. if dollar index got trouble next week, gold is likely to challenge previous high of 1839. It will be confluence with my gold setup below. The link is also provided for reference.
2. I might get some nice long setups on EURUSD, GBPUSD given the weakness of USD next week. Of course, the setup must be align with my core trading strategy.
China is the first major economy to recover from the pandemic. I saw how strong the CHN/CNY was against the dollar. Now, it's the US turn. I'm bullish of the dollar index in the mid-term, say for the rest of the year.
Do give me a like if you're with mine. Thanks for your support.
Comment:
Haha, looks the second scenario.
Comment:
It continues going up with better-than-expected NFP data.
plan your trade and trade your plan
