The incident in Syria has left the dollar in mixed sentiment, although dollar strength is anticipated very soon.
Looking at the Cable chart, indicators are slowing down nearing the overbought zone, which could signal a reversal by next week. A bearish Crab is almost complete, and a bullish Shark pattern might be on it's course as well.
The pattern reversal zone (PRZ) is estimated to be in the range of [1.5900, 1.5980] according to harmonic coordinates and resistance lines.
A safer way to approach reversal is take shorts on the break of the red uptrend line, since it will be certainly a bearish trigger.
Targets to take profit are 1.5400 and 1.5070.
May the market be with you.
Comments
kamukak
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Redstar, do you think next week's FOMC/ taper or no taper will affect this pattern big time? or No taper is already built in price? Thanks
RedStaR
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Next week's FOMC will definitely have a big impact on the USD, Fed tapering at this point should be expected, although the magnitude of that tapering is still ambiguous.
In relation to currency price movements, it should go either way depending on the difference in magnitude between expectations and actual news.
Right now, market sentiment is showing increasing demand for dollar as the Federal reserve is expected to taper, so it's priced in, but not completely.
With that said, a no taper will definitely weaken the dollar. While a taper will affect the dollar depending on how big the reduction of asset purchases the Fed decides to cut.
The odds of major dollar strength is low at this point, but we will see what happens until September 18, as this is not the only major market event. And sentiments might change completely until then.
I personally prefer not to trade news, and usually close out or place tighter stops before big news events.
kostolany
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muy bueno estoy deacuerdo. aunque veo muchos cortos y me preocupa.
kamukak
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Thanks again for your pretty looking charts and Time.