For every decent move in a single currency, we need a catalyst. This week we have two for the US Dollar
Tuesday, we have the much-anticipated CPI (Consumer Price Index), inflation indicator. Exp: MoM 0.6% YoY 6.4%. This is closely followed by Fed Interest Rate decision and policy statement on Wednesday.
My tealeaves are suggesting that we move lower on Tuesday, but only to complete the downward cycle to then get flipped USD(DXY) bullish on Wednesday.
Let us look at some charts and what trades I am looking to take:
US Dollar Index daily
My bespoke support is seen at 103.44 and 103.37. I like it when the support bands are close.
We will complete a bullish Crab formation between 103.30 and 103.05.
Looking to the 4hr chart, and we could stop short at 103.62, completing a butterfly pattern. Both patterns are bullish.
With this in mind, my trade call is:
Buying DXY @ 103.62.
Stop at 102.90.
Target 109.40.
R Ratio 8.03 (medium-term trade).
Tuesday, we have the much-anticipated CPI (Consumer Price Index), inflation indicator. Exp: MoM 0.6% YoY 6.4%. This is closely followed by Fed Interest Rate decision and policy statement on Wednesday.
My tealeaves are suggesting that we move lower on Tuesday, but only to complete the downward cycle to then get flipped USD(DXY) bullish on Wednesday.
Let us look at some charts and what trades I am looking to take:
US Dollar Index daily
My bespoke support is seen at 103.44 and 103.37. I like it when the support bands are close.
We will complete a bullish Crab formation between 103.30 and 103.05.
Looking to the 4hr chart, and we could stop short at 103.62, completing a butterfly pattern. Both patterns are bullish.
With this in mind, my trade call is:
Buying DXY @ 103.62.
Stop at 102.90.
Target 109.40.
R Ratio 8.03 (medium-term trade).