We posted a few hours ago a chart to show why we think the dxy will be bullish over the next few weeks. This can be a great opportunity to short an asset showing weakness against the dollar, such as the pound.
GDP/USD in a perfect rising wedge where each higher high is increasingly marginal. The rounded top suggests lack of demand and when you couple this with bearish divergence you can clearly see that the buyers might be exhausted.
You should wait for a breakdown in this situation to confirm. However we are going to position ourselves partially within the wedge as there is a clear bearish bias and the DXY is positioned perfectly for this trade.
Also key to look for a marginally higher high again, that would indicate more weakness.
GDP/USD in a perfect rising wedge where each higher high is increasingly marginal. The rounded top suggests lack of demand and when you couple this with bearish divergence you can clearly see that the buyers might be exhausted.
You should wait for a breakdown in this situation to confirm. However we are going to position ourselves partially within the wedge as there is a clear bearish bias and the DXY is positioned perfectly for this trade.
Also key to look for a marginally higher high again, that would indicate more weakness.
Note
Very clean breakthrough. On our way to the target!Note
Closed with Minot profits - Turning bullishTrade closed manually
Related publications
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.
Related publications
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.