Dollar Index - Double Bottom?
Updated
After very good fundamental news in last week, we experienced 2 bull Daily candles in according to ISM service and Non-farm Payroll events. This signals a retest of the last high also, a neckline of the Double Bottom pattern.
If a break from this level at 93.30 would provide a clear path for the Double Bottom pattern to form and measured move may lead to 97.x level.
A failed break from here would give Dollar index come back to sideways range and challenge the latest structure's level at 91.x level.
It's safe to wait one of those things happen before making any serious medium term trades.
From fundamental views, EUR is less likley to change its monetary policy before any other central banks like AUD, NZD, USD, GBP, so its would perform worst for the time being ahead compared to other pairs.
For AUD, we would check for Covid situation there while NZD is on a clear path of rate hike for the months ahead. AUDNZD is till a safe short if Covid story is not better for AUD this week.
EURGBP is still a safe bet with bearish view due to the differences so far in the view of central banks.
If a break from this level at 93.30 would provide a clear path for the Double Bottom pattern to form and measured move may lead to 97.x level.
A failed break from here would give Dollar index come back to sideways range and challenge the latest structure's level at 91.x level.
It's safe to wait one of those things happen before making any serious medium term trades.
From fundamental views, EUR is less likley to change its monetary policy before any other central banks like AUD, NZD, USD, GBP, so its would perform worst for the time being ahead compared to other pairs.
For AUD, we would check for Covid situation there while NZD is on a clear path of rate hike for the months ahead. AUDNZD is till a safe short if Covid story is not better for AUD this week.
EURGBP is still a safe bet with bearish view due to the differences so far in the view of central banks.
Note
DXY made a breakout yesterday with clear Daily candle.s3.tradingview.com/snapshots/l/Lgd6JM3H.png
I’ve taken a break from my public community engagements to focus on raising my three kids, but I'm rediscovering my passion for working again. Stay connected, as I plan to return and rejoin my old communities with a lot of new skills one day soon.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.