As seen on the chart there was a high breach and close out below 1.21000 to close out the market. This was largely due to overnight news of Biden’s stimulus plan which sparked positive sentiment for investors who in return loaded up on the dollar. COVID-19 is also having an effect as countries are continuing to suffer however the U.S has access to the majority of the available vaccines.
DXY is screaming at 91.00 which will be a major indicator for this pairs direction pending DXY is rejected with a or breaches through. That being said we may see timely consolidation rejections to start the week at 1.21000 until DXY makes a strong move. My previous DXY idea forecasting the 91.00 retest is attached.
Based on the high sell off too breach 1.21000 I am watching the indicator to cross through the 0 line to continue and increase sell off . We can currently see a steep /SIGNAL cross with deep seller histogram bins.
The dotted red and green arrows represent the potential directions based of breaches/ .
I will enter a trade with a confirmed 1.21000 rejection and with first take profit at 1.20000 and second take profit at 1.18300.
As mentioned my DXY analysis forecasting 91.00 retest is attached. Please read and observe carefully and comment with any thoughts and ideas. Thank you.