How The Dow And SPX Tie into Forex This Coming Week, DOWI,1 Day
Before every week of trading , I like to sit down and check out what the markets will be doing this week , and how I can ease into the earlier part of the week without losing money.
The Us Dollar is the perfect currency because we have several major components at our finger tips. the Dow (above) is the first one we will talk about. This week the Dow is moving into a triangular consolidation , suggesting that it may break out to continue in the major trend of the market. In most cases this would be valid, but after looking deeper int the consolidation we notice a Wolfe wave series has began to form , leading me to believe that the market is likely to pull up , but only to the height of the current triangle , before breaking structure to the downside upon news of interest rate hikes near September.
What this means is that in this chart, it appears likely that the market will have a Bullish trend for the week, maybe even the entire month.
More evidence to support the Us moving up in the near future can be found in the S&P 500 index:
The S&P suggests similar movements after it has completed a Shark Pattern earlier this month. The S&P was as unclear to anyone without the support provided by the Dow. After examining the Dow and determining the US markets to be headed north for the week, we can confidently say that the S&P should follow suit and push higher into the coming week.
What does this mean for the dollar? :
As far as the dollar is concerned, it doesn't look good. when the stock market rallies, it , in a sense, creates more money which would inflate the dollar , ultimately decreasing its value. As you can tell by the chart of the Dollar Index, it appears that the dollar will push lower down into the final point of a Wolfe Wave Series.
With all of this information i was able to determine that the Dollar appears that it will be decreasing in value. In my Next Idea posted, i will explain how i plan to use this information in a major trade for this next week, maybe as long as a month.
The Us Dollar is the perfect currency because we have several major components at our finger tips. the Dow (above) is the first one we will talk about. This week the Dow is moving into a triangular consolidation , suggesting that it may break out to continue in the major trend of the market. In most cases this would be valid, but after looking deeper int the consolidation we notice a Wolfe wave series has began to form , leading me to believe that the market is likely to pull up , but only to the height of the current triangle , before breaking structure to the downside upon news of interest rate hikes near September.
What this means is that in this chart, it appears likely that the market will have a Bullish trend for the week, maybe even the entire month.
More evidence to support the Us moving up in the near future can be found in the S&P 500 index:
The S&P suggests similar movements after it has completed a Shark Pattern earlier this month. The S&P was as unclear to anyone without the support provided by the Dow. After examining the Dow and determining the US markets to be headed north for the week, we can confidently say that the S&P should follow suit and push higher into the coming week.
What does this mean for the dollar? :
As far as the dollar is concerned, it doesn't look good. when the stock market rallies, it , in a sense, creates more money which would inflate the dollar , ultimately decreasing its value. As you can tell by the chart of the Dollar Index, it appears that the dollar will push lower down into the final point of a Wolfe Wave Series.
With all of this information i was able to determine that the Dollar appears that it will be decreasing in value. In my Next Idea posted, i will explain how i plan to use this information in a major trade for this next week, maybe as long as a month.
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.