HughGRection
Long

USD divergence hinting at a positive reaction to NFP's

INDEX:DXY   US Dollar Currency Index
171 3 0
- There are 2 current bullish divergences on the RSI .
- This could be easing of short positions into the event risk, or possibly an indication of a positive USD reaction to the NFP's.
- Obviously this will depend on the actual data, but even a release in line with expectations should produce a relief rally to the USD. It is currently heavily oversold against almost every major currency pair which are generally showing momentum ebbing away from price as well.

US$ cannot be bullish with fundamentals like There being no Debt Ceiling. We have more chance of hell freezing over than the Fed stops expanding its balance sheet, and starts the tapper, let alone stopping QE / printing. Look at gold go up.
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HughGRection PRO MRS Watanabe
This is a short term technical chart that didn't have much to do with long term macro fundamentals. Please read my second point which acknowledged this could be a reflection of easing out of positioning ahead of massive event risk. Your news is quite obvious, and my current USD positions are all bearish wagers. I mainly posted this to make people aware of the deviation from the obvious.
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I didn't add it in the original chart, but 4H ATR(Avg. True Range) is matching it's most recent low from 9/16-17. Which of course, was the FOMC decision. This implies very high potential volatility across all USD pairs. I would look for a daily range post NFP of around 150-200 pips.
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