DXY - USD In Trouble Again ? Starting off with technicals today, this article will aid the previous gold article posted. After a rally of higher highs and higher lows, we then saw a drive to the 95.75 price region creating a new lower low, with an anticipated lower high possibly forming today depending on the candle closure.
With that being said, I have entered short term positions on USD pairs as well as a long on Gold. I will come back to these pairs, come Monday. We can see we've currently rejected the descending trend line and pinged off the 78.6% Fibonacci level. We also have a possible right shoulder forming at the time of writing this article which will form a head and shoulders pattern allowing us to see a new leg to the downside. This move may play a vital role as to where the dollar will be heading this year, if we can reach target and break the ascending channel, we may see a continuation to the downside. We also have a minor daily resistance which was met and rejected however this isn marked up on the chart but it is in line with the 78.6%.
News today as well as major volatile data releases are seen next week so fundamentals will definitely be important to keep an eye on as well as to see our daily close and how price reacts Monday morning, but overall my bias on USD is bearish. Expect major downside movements for all USDxxx pairs.
As always, keep your psychology on point and maintain risk and money management so you can trade at your optimal and most efficient rate.
