Today is the last trading day for June. On the hopes that China doesn't want to be called out as a currency manipulator, I think it's a good speculative trade to short this pair before it resumes its uptrend.
This is just for my record keeping so I can look back in a few months time.
Basically, if the dollar doesn't bounce from current levels it will continue to fall to around the 89 area which offers a much stronger support for a bounce.
As highlighted, this pair is in a strong psychological area of support/resistance.
My view is - I have a bearish outlook on this and expect it to fall through support. This is because I cannot see the USD rallying until the debt ceiling is resolved.
Clear support and resistance channels have been established as this pair awaits Brexit. In my opinion, I'd play the channels until it is no longer valid so watch the actions in the shorter time frames for the bullish/bearish candles at the highlighted levels.
In my opinion, the Hang Seng Index is hitting a top, meeting heavy resistance in this highlighted red area, and is due for a pullback. Look for bearish candles/formations (Double Top) to confirm the pullback. Idea invalidated if index breaks out of the 24400.
This is just an observation for reference only but the way the dollar has been rising seems remarkably similar to the way it rose back in 1995. Basically, we're at 1998 right now and I expect a short pullback during the first half of 2017 but lift out in the 2nd half back of 2017 to its previous high of the 120 area.
Anything can happen, but it looks as though it has turned away from the upper bound of the channel and is heading back down. Given traders will be back in force on Monday, its probable USD will resume its upward path.
Enter at 0.705
Target is 0.695