I've predicted that the index will trail back down to the 13,260s where it will find some support before dropping down to the target short exit of 13,150s. There it will either break support again and continue on a downward trajectory to at least 12900s and possibly lower.
Short at (or around) 13,300 and enjoy the ride.
Currently short w/ 3 lots between 13,250...
The DAX index has hit daily resistance at 11,48x and will continue down for the time being.
I've seen a lot of chatter about the coorelation between AUDUSD and DAX and I have to agree that it follows it by +/- 60 days. If I continue to use this theory as a basis for my trate, we should see DAX shave off around 1,000 points in the next week.
EJ has printed a rejection candle on daily with a head & shoulders on 1H and 4H charts, looking for a strong break under 131 to validate this potential trade.
Blue line indicates support, green shows resistance. The red line is the trade idea.
Potential short with huge downside potential.
DXY has had a massive run up in the last 30-45 days without much of a pullback, I would expect that unless major economical events in the next few days, we will see the following pattern emerge.
Once this pattern is complete, it should bring with it an easing in USDJPY and a decent potential long in XAUUSD (Gold).
I think this is what will happen and because I say so, it will be true. You wait.
Due Diligence is based on a coin flip and some magic beans (also pivot points).
