As I expected, DXY broke above short term wedge resistance and reached my first target.
Now the index looks determined to continue its upward correction and 92 could be the target for such a correction.
In my opinion rallies in EurUsd, NzdUsd, AudUsd should be sold, and also a buy trade for UsdCad could be a good choice
A great volatility day for USD Index yesterday and, after opening with a gap up, the index fell in the afternoon and from a technical point of view, just filled the gap.
Now it seems like we have a strong base on 90 and slightly under and I expect a correction to follow.
Pairs that I have in focus for selling are EurUsd, NzdUsd and AudUsd
What is clear is that USD is weak but also is clear that the market can't be unidirectional indefinitely.
Usd counterparts started the year strong but the new highs (and new lows for the index) are marginal and lacking power. So far all that USD could do was to have some intraday correction and I think this is about to change and we will have a lasting...
I was pretty bearish USD till now and I wasn't disappointed by now and although in the long run I maintain my bearish outlook on DXY, at this point a drastic correction can be just around the corner.
With DXY approaching a strong support and old congestion zone around 89, I think Dollar bears should be very careful.
From the risk point of view also I can't see a...
As I said before, I'm very bearish USD, and till now things worked that way.
Now, after breaking down the flag formation, we have another important break for USD index: the horizontal support and previous low.
In my opinion rallies on USD should be sold and we can soon have new local highs for EurUsd, AudUsd, GbpUsd and NzdUsd
Last week I said that I expect a new low from USD Index and my opinion doesn't change.
After a short-lived rebound from 90.60 support, DXY opened last night with a gap and dropped again, not being able at least to close the hole gap.
This tells me that a break under the support area could be just around the corner and DXY can have a new leg down even under 90...
Two weeks ago I said that I expect 92 support to fall , and now we have this break, and Dollar index is trading at 90.65 at the time of writing. More important is that DXY is now just above another support situated at 90.50.
If we look closely at the chart we can see that after finding support at 90.50, USD Index made a short term double bottom that I've spoken...
As I correctly anticipated, DXY broke under 92 important support and that lead to a 1.5% loss for the index, a strong break above 1.2 for EurUsd and GbpUsd reaching 1.35.
Now the index found support in 90.50 area and has formed a small double bottom visible on H1 chart. The neckline of the pattern is broken and we can expect a correction to 91.50 zone...
As I said over the weekend, I expect 92 support to fall, and if we look closely at the price action in USD major pairs we can see that each and every dollar's attempt to strengthen was sold by bears.
Considering 3 months of consolidation above this support and the fact that the index is pushing and pressing down I expect this break not only to happen but for USD...
For 3 months now, DXY is trading in a range between 92 zone support and 94.50 zone resistance.
Although the 92 support has not been broken yet, USD seems very weak with all rallies being very well caped by bears.
I believe that this support will fall eventually and USD will spiral down to 88 support.
In this context AUD, NZD, GBP, and EUR should be bought against...
For now, DXY is trading above 92 important support, and although this is an important support USD looks very weak overall.
The price seems to press on this support and we can assist a break soon.
That being said USD is bearish on medium-term and only a break and sustained buying power above 93 would shift things in bulls favor.
92 zone proved to be strong support for DXY and last week the price turned from this zone putting in a nice bullish engulfing from here.
The price corrected the recent up move and now looks ready to challenge the range resistance at around 94.
In this context i will look for selling opportunities in EurUsd, AudUsd, NzdUsd and GbpUsd