USD Indx - Short term some pull back possible
The reversal from the 79,00 strong support zone was very strong. Let's check what can we expect.
Daily: DMI, Slow Stoch and MACD all bullish, but price still below Kumo. The actual Kumo Cloud is still thick above the price, while Chikou Span still below price. Tenkan/Kijun is still in bearish mode.
4 Hrs: Tenkan/Kijun is bullish and price managed to break above the Kumo, but strategic long and real trend reversal would take place only with a clearing of previous high at 80,00. Slow Stoch is important this time, and that is turning down after the quick rally.
Heiken Ashi: Moving averages are supportive for longs, but we have two small red candles. It also indicates that a retest to 79,60 is possible.
If we put it together, I think a minor pull back or a consolidation needs to happen here anyway (maybe until Thursday). I can not tell you if we see a deeper pull back (to or touch below 79,50) or just some consolidation and sideaway moves with price holding above 79,60, but it looks like it is not yet the time for the real and big trend reversal. Anyhow, I think sooner or later price will break out on the top side of the daily triangle, and probably by end of June we will likely see a new bullish trend unfolding above 80,00 - 80,50.
Levels to watch:
Lower: 79,40 / 79,50 / 79,60
Upper: 80,00 / 80,30
I still favour to buy USD on dips, as I think later this year the USD will have a chance to become more bullish, but keep in mind we can talk about long term bullish reversal only if it crosses 80,30 and stays above the Kumo.
So watch for the pull back and price action around the mentionned lower levels. Maybe that will be a good chance to re-enter long positions again.
Daily: DMI, Slow Stoch and MACD all bullish, but price still below Kumo. The actual Kumo Cloud is still thick above the price, while Chikou Span still below price. Tenkan/Kijun is still in bearish mode.
4 Hrs: Tenkan/Kijun is bullish and price managed to break above the Kumo, but strategic long and real trend reversal would take place only with a clearing of previous high at 80,00. Slow Stoch is important this time, and that is turning down after the quick rally.
Heiken Ashi: Moving averages are supportive for longs, but we have two small red candles. It also indicates that a retest to 79,60 is possible.
If we put it together, I think a minor pull back or a consolidation needs to happen here anyway (maybe until Thursday). I can not tell you if we see a deeper pull back (to or touch below 79,50) or just some consolidation and sideaway moves with price holding above 79,60, but it looks like it is not yet the time for the real and big trend reversal. Anyhow, I think sooner or later price will break out on the top side of the daily triangle, and probably by end of June we will likely see a new bullish trend unfolding above 80,00 - 80,50.
Levels to watch:
Lower: 79,40 / 79,50 / 79,60
Upper: 80,00 / 80,30
I still favour to buy USD on dips, as I think later this year the USD will have a chance to become more bullish, but keep in mind we can talk about long term bullish reversal only if it crosses 80,30 and stays above the Kumo.
So watch for the pull back and price action around the mentionned lower levels. Maybe that will be a good chance to re-enter long positions again.
