Hi traders!
We are back to see how our DXY friend is doing. This is not our first time covering this index. The marker makers made sure before showing its hand that we had total fakeout. This week when I said that the 92 level was big and DXY found the strength to push higher. We thought at that time that maybe DXY had somehow found something within itself for that final bull run but the market markers just bought it a little and now DXY is crashing hard vs all majors currencies.
When you look at it from a technical perspective... it played out almost perfectly for the bears to take back control of this index. I didn't even draw anything here... if you go back to our last DXY analysis, these are the same FIBS and support lines! This is why I encourage people to never erase their previous work until it is totally invalid.
So what do we expect the pair to do for the foreseeable future? Crash... and probably crash some more until it reaches that trend line we drew (that is forming a nice asymmetrical wedge) Until then we will go short USD on all pairs. The last stand from the Fed came when Yellen gave her speech not too long ago assuring that they will hike rates again in 2018 (fundamentally this supposed to make the currency stronger). The market isn't buying that crap it seems.
I want to add that this downtrend of the DXY will give both silver (active entry) and gold some more ammunition to run again. Be on the lookout that commodities are bullish for the short term.
Trade safe!
Disclaimer: This is my trading analysis, it is not an invite or recommendation to trade.
We are back to see how our DXY friend is doing. This is not our first time covering this index. The marker makers made sure before showing its hand that we had total fakeout. This week when I said that the 92 level was big and DXY found the strength to push higher. We thought at that time that maybe DXY had somehow found something within itself for that final bull run but the market markers just bought it a little and now DXY is crashing hard vs all majors currencies.
When you look at it from a technical perspective... it played out almost perfectly for the bears to take back control of this index. I didn't even draw anything here... if you go back to our last DXY analysis, these are the same FIBS and support lines! This is why I encourage people to never erase their previous work until it is totally invalid.
So what do we expect the pair to do for the foreseeable future? Crash... and probably crash some more until it reaches that trend line we drew (that is forming a nice asymmetrical wedge) Until then we will go short USD on all pairs. The last stand from the Fed came when Yellen gave her speech not too long ago assuring that they will hike rates again in 2018 (fundamentally this supposed to make the currency stronger). The market isn't buying that crap it seems.
I want to add that this downtrend of the DXY will give both silver (active entry) and gold some more ammunition to run again. Be on the lookout that commodities are bullish for the short term.
Trade safe!
Disclaimer: This is my trading analysis, it is not an invite or recommendation to trade.
