The pair rallied on Friday, just hours before it came crashing down, creating a bearish dark cloud cover signal on the 4-hour chart. On the 1-hour chart, the market has closed just slightly below 18 December’s high ($1.6480), as well as below the Fibonacci Extension level of 0.618.
With the bearish candlestick signal on the 4-hour chart, rally of the DXY, along with the market closing just slightly under $1.6480, it is a good opportunity to short this currency pair. For those who are more conservative, I would suggest waiting for the 10SMA to cross below the 20SMA before shorting it.
With the bearish candlestick signal on the 4-hour chart, rally of the DXY, along with the market closing just slightly under $1.6480, it is a good opportunity to short this currency pair. For those who are more conservative, I would suggest waiting for the 10SMA to cross below the 20SMA before shorting it.