I'm watching the TVC:DXY as it could be forming an inverse head and shoulders pattern. This is a bullish pattern. The right shoulder could find it's low around the 90 handle as it has acted as strong support. Confirmation would be if price can trade above 91. DXY is currently trading near the lows of it's monthly sideways channel, giving this pattern good location for follow through. A measured move suggests 92.50 as the objective target for this pattern. If USD strengthens, look to pair it with a weaker currency for strong trends.
Kommentera
⋅
Inverse H&S pattern confirmed and started a new uptrend. Watching USD against weak currencies for buying opportunities.
@Aperna, YES!! What are your thoughts on the market? I'm getting mixed signals from some FANG stocks, such as Microsoft, Tesla, Amazon...They're showing very bullish momentum, even breakouts. You think it's a bull trap? Some of my MACD indicators are curling up...But then I look back at kind dollar and say no way! Here comes the wrecking ball! What do you think?
Aperna
⋅
@mjmassens, Could be a fake out, weekly trend of the DXY is still down. But while the daily trend is up, we could see a continuation of the weekly correction. I like to wait to see USD strength show against the other currencies. for example we are seeing USD strength vs EUR and JPY. After tonight's RBA statement the AUD could continue to weaken as well. Generally, waiting for the turn around with the pair you are trading will help increase the odds.