USDCZK: Playing Dollar Strength for FX:USDCZK by Technician

TradingView

794 views

Another option to play Dollar Strength. The USDCZK showing strong bullish momentum, hitting 21.8600 resistance level , I expect a pullback within the coming few days from that resistance, however, i would be seriously considering a long position from lower levels, possibly around the shaded area and support level near 21.23-21.000, targeting 23.5500.

Good luck

Techncian

Related Ideas

about USDSGD 5

Hi Technician, I'm assuming this trade isn't active yet due to the pullback not being deep enough to trigger the long call, if at all.

bickster73

Yes , but in general this is a framework or general guide for a potential trade opportunity, so anyone might choose different levels to enter. Like for example if they saw a double bottom formation based on lower time frame analysis.

broker is robbing me!

What is the name of your broker?

Did you know that CZK Central Bank set a floor rate exchange @ 27 vs EUR "as long as needed"?
Source: http://finance.yahoo.com/news/usd-czk-best-emerging-fx-222000120.html

At the time of writing with EUR @ 1.265 it gives a USD floor @21.4 vs USD.

It looks like price is rising mechanically due to EURUSD drop. What's your take about that?

B33tcoin

As you can see, USDCZK is then highly correlated to EURUSD. 1% Ahead.

B33tcoin

Yep, most euro currencies are pretty correlated with the euro.

"At the time of writing with EUR @ 1.265 it gives a USD floor @21.4 vs USD. " It cant be calculated this way,

Technician

Nice insights. Did my homework on a YTD graph, DKK and CZK are quite similar to EUR. (Especially DKK!)
SEK and NOK were better candidates, respectively the worst and the best.

B33tcoin

Yes, sek has been a fantastic short

B33tcoin

But anyway, longing the USDCZK anywhere might be a good idea :D