Kumowizard

Careful with USD longs now! Trail your stops!

TVC:DXY   US Dollar Currency Index
104 1 11
What could drive USD a lot highyer from here? Obviously an "unexpected" rate hike. Will it happen? I doubt, but of course we can not exclude it.

However if we look purely at technical picture, we have some warning signals, that holding too much long USD exposure may not be a very good idea. Especially if we have been long since 94,50-95,10.

Weekly:
- Ichimoku is neutral. Price reached top of spot Kumo and possible trendline , ard 97,50+. This is a resistance now.
- Heikin-Ashi candle is still bulliish, but watch haDelta/SMA3 cross down! Thtat shows some drop in momentum. (of course the week is not yet over)
- EWO             is slightly bullish . MACD is bullish , but still below zero level.

Daily:
- Ichimoku is bullish , but price got relatively far above the flat Kijun Sen support (95,30).
- Price is close to 97,50 resistance
- Heikin-Ashi shows indecision (normal before FED meeting)
- EWO             is bullish .
- Major support zone is 95,30-95,55

4H:
- Ichimoku setup looks bullish , BUT it Price can't make a higher high on close from here, then weak bearish Tenkan/Kijun cross will remain in place! And of course a lower high means possible end of trend.
- Heikin-Ashi natural indecision.
- Support zone to watch: 96,70-96,85. Bulls should trail stop to this area.
- EWO             shows negative divergence
Agree... Target reached.

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