[US Dollar Index] 12 Jan, 2021 - Roger V Trading Ideas
US Dollar index
What happened to US Dollar index?
Since ever US dollar index has broke the support level of the triangle in November 2020. The US dollar index has gone in a bearish trend.
Until today on the 12th of January 2021, I was able to return to review the US dollar index chart, and realised there is some potential signal appearing on the MT4 monthly chart, with a bullish candlestick. Knowing that one monthly candlestick represents four weekly candlesticks. As per image shown below.
As per Roger V Trading Strategy, new lows or new highs. It is more preferred to wait for extra more candlesticks to be formed in a consolidation before it is considered as a pair to execute the trade.
Before the first bullish candlestick is formed in the weekly chart, the strategy taken by Roger V's, is more preferred to idle until the third or fourth candlestick to be formed. I would wait further if there is no in favoured signal appear at the time.
Friendly Note:
The candlestick formed in a greater timeframe, is more legit and it increases the potential of the direction will proceed.
What is happening in the weekly and monthly chart of US dollar index:
As seen on the monthly chart, an on-going bullish candlestick is currently forming for January 2021, it may take another 19 natural days to form its candlestick. At the same time, looking into weekly chart, there is four candlestick formed already for December 2020. If the candlestick on the weekly chart can form a bullish candlestick. There is a potential possibility this may be a long term trend turning point for US dollar index to turn its direction from weak to strong with the US dollar. (As per technical and strategy view.)
Worst Case Scenario:
However, not to ignore the worst case scenario if it happens.
If the price goes down to 88.900 (Danger zone) and then if even worse, surpasses the last support level of 87.900.
The potential idea of US Dollar in going strong will all cease its idea.
Best Case Scenario:
All major pairs will be in the direction of US dollar going strong (70~80% correlated most times)
Major pairs such as, AUDUSD, USDJPY, USDCAD, USDCHF, NZDUSD, GBPUSD,EURUSD.
Gold would also be considered to be a strong correlated relationship with US dollar, as the abbreviation is XAU USD.
(For further questions or anything unclear, feel free to leave a message in the posts comment at the bottom of the page or on Roger V Diamond VIP group.)
Conclusion:
Due to the above reasons, the possibility for US dollar if not breakout the last support level of 87.900. There will be a potential of US dollar going strong in the next few weeks time, or even upward trend in months time.
(Note: The forecast above is an estimation of the resistance/ support level for the entry, TP, and SL. For more precise positions will depend on the shape formed with the candlestick at the time.)
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How to get closer with market updates?
Where to find Roger V?
FB/ Google: Search Roger V Trading Academy
--------------------
Disclaimer: ALuoTradingJournal does not provide any personal advice or general advice. This is only a journal to keep ALuo in noting the trades and what the market is going on as a trading journal. ALuo will not take any responsibility for any profits or losses. Please trade at your own risk.
What happened to US Dollar index?
Since ever US dollar index has broke the support level of the triangle in November 2020. The US dollar index has gone in a bearish trend.
Until today on the 12th of January 2021, I was able to return to review the US dollar index chart, and realised there is some potential signal appearing on the MT4 monthly chart, with a bullish candlestick. Knowing that one monthly candlestick represents four weekly candlesticks. As per image shown below.
As per Roger V Trading Strategy, new lows or new highs. It is more preferred to wait for extra more candlesticks to be formed in a consolidation before it is considered as a pair to execute the trade.
Before the first bullish candlestick is formed in the weekly chart, the strategy taken by Roger V's, is more preferred to idle until the third or fourth candlestick to be formed. I would wait further if there is no in favoured signal appear at the time.
Friendly Note:
The candlestick formed in a greater timeframe, is more legit and it increases the potential of the direction will proceed.
What is happening in the weekly and monthly chart of US dollar index:
As seen on the monthly chart, an on-going bullish candlestick is currently forming for January 2021, it may take another 19 natural days to form its candlestick. At the same time, looking into weekly chart, there is four candlestick formed already for December 2020. If the candlestick on the weekly chart can form a bullish candlestick. There is a potential possibility this may be a long term trend turning point for US dollar index to turn its direction from weak to strong with the US dollar. (As per technical and strategy view.)
Worst Case Scenario:
However, not to ignore the worst case scenario if it happens.
If the price goes down to 88.900 (Danger zone) and then if even worse, surpasses the last support level of 87.900.
The potential idea of US Dollar in going strong will all cease its idea.
Best Case Scenario:
All major pairs will be in the direction of US dollar going strong (70~80% correlated most times)
Major pairs such as, AUDUSD, USDJPY, USDCAD, USDCHF, NZDUSD, GBPUSD,EURUSD.
Gold would also be considered to be a strong correlated relationship with US dollar, as the abbreviation is XAU USD.
(For further questions or anything unclear, feel free to leave a message in the posts comment at the bottom of the page or on Roger V Diamond VIP group.)
Conclusion:
Due to the above reasons, the possibility for US dollar if not breakout the last support level of 87.900. There will be a potential of US dollar going strong in the next few weeks time, or even upward trend in months time.
(Note: The forecast above is an estimation of the resistance/ support level for the entry, TP, and SL. For more precise positions will depend on the shape formed with the candlestick at the time.)
--------------------
How to get closer with market updates?
Where to find Roger V?
FB/ Google: Search Roger V Trading Academy
--------------------
Disclaimer: ALuoTradingJournal does not provide any personal advice or general advice. This is only a journal to keep ALuo in noting the trades and what the market is going on as a trading journal. ALuo will not take any responsibility for any profits or losses. Please trade at your own risk.
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.