The market reacted to Biden's infrastructure bill which will unleash another wave of dollar liquidity into the markets favouring risk on assets over safe havens. We should see the dollar continue its selloff even if the price is due for a short term relief rally.
If the bulls find some momentum this week while the bears are sleeping, we should see...
The dollar index ended up breaking downwards this week. It is in no man's land between the channel formed by the 93.188 and around the ~92 levels.
We think there's likelihood for the price to find more downside to test and potentially even break the bottom of the channel to hunt the stop losses around the 91.8 and 91.5 areas before finding more...
- the DXY could possibly reach 92.0 before continuing the downtrend channel to lows of around 88.247
- Dollar weakness suggest some buys will possibly be available on eur/usd since they are inversely correlated.
- Open to the possibility that the DXY has already made its bullish push and may continue, meaning it may not reach lows of around 88.
So far everything is on track.
Thoug hwe dripped lower than expected, we did still bull div on the weekly as predicted. if we adjust accordingly to the new data, we reject 92.5, sweep the 89/90s then rocket mid year 2021 (timing pure pure speculation)
With the NFP news on Friday, we saw the DXY struggle to break the sequence of the lower highs that started since August, this still put the bears in control. We might be seeing a 5 waves move to the downside and then a big upward correction. TRADE WITH CAUTION
DXY Long Idea (5/7/19) 4HR Chart
- Price currently broke the trend line that I have placed on the 4HR, and had a retest of that trend line .
- I am looking for the lower high to be formed on the overall bullish trend line , so once price reaches the 61.8% fib level and the 4hr disturbance
- Once the reversal occurs, price will then reach at...