Brandon50115

EURUSD pair and DXY convergence

Short
FX:EURUSD   Euro / U.S. Dollar
To add to the growing list of evidence against the strength of the EURUSD pair, a quick look at it's daily chart shows a convergence between the US dollar index and the pair.

The 4-hour chart shows a crossover between the two on 9/26 and the two are now diverging, signaling weakness in the lower level trends.


The weekly chart shows similar weakness in the mid level trends.


However, keep a close eye on the 1.14 levels. This was where a breakout occurred on the weekly renko chart. We could see a turnaround. Due to the volume spikes on the down days, it leads me to believe this was a period of distribution and the breakout around 7/10 was false and a move past 1.14 is likely. Economic indicators that I discussed in a previous post support a move lower as well. But, again, we will need to watch what the price does around the 1.14 level. Know one knows for sure; that's for sure.

Here's the renko weekly chart I used to get the s/r level .


Happy Trading!!


Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.