It looks like DXY will still be heading lower in the short to
medium term after last Fridays close below the 61.8% level
measured from 95.53 to 93.71, thus, a bearish 2618 trade
signal following the double top above.
At the moment it is difficult to assess the medium term trend
for currencies with all the political turmoil in Europe and the
uncertainties around the trade war between the USA and
China. Nonetheless, it is possible with the help of
analyzing the performance of DXY to forecast near term
Forex pair target levels by looking at price levels around
the low of the projected target objective following the
double top formation. In the chart you will see the highs
and lows of a few selected Forex pairs during the second
week of May, 2018.
Thus, should DXY continue its way down to the 92.80 level
below, you can set your take profits levels for the listed
Forex pairs as shown. All except USD/JPY in the list will
be bullish, so keep an eye on DXY over the next couple of
weeks.
Should price close below the 92.80 level, then this still is
not a sign of a bearish trend continuation for DXY, as below
at the 92.24/20 level currently the 100 & 200SMA are
about to make a bullish cross over, thus, enabling the
92.20/00 level to become long term support, if price holds
there.
Happy trading
medium term after last Fridays close below the 61.8% level
measured from 95.53 to 93.71, thus, a bearish 2618 trade
signal following the double top above.
At the moment it is difficult to assess the medium term trend
for currencies with all the political turmoil in Europe and the
uncertainties around the trade war between the USA and
China. Nonetheless, it is possible with the help of
analyzing the performance of DXY to forecast near term
Forex pair target levels by looking at price levels around
the low of the projected target objective following the
double top formation. In the chart you will see the highs
and lows of a few selected Forex pairs during the second
week of May, 2018.
Thus, should DXY continue its way down to the 92.80 level
below, you can set your take profits levels for the listed
Forex pairs as shown. All except USD/JPY in the list will
be bullish, so keep an eye on DXY over the next couple of
weeks.
Should price close below the 92.80 level, then this still is
not a sign of a bearish trend continuation for DXY, as below
at the 92.24/20 level currently the 100 & 200SMA are
about to make a bullish cross over, thus, enabling the
92.20/00 level to become long term support, if price holds
there.
Happy trading