Timing moves can be difficult on both long and short-term basis. But when price goes oversold on the weekly chart, it can be really difficult to chase the move lower, such as we saw in DXY back in late-April.
The currency hit a major spot of confluent support on Easter Monday and at that point RSI on the weekly was in oversold territory for only the second time in the past seven years.
As I had highlighted in this post (tradingview.com/chart/DXY/EKJbk5Gt-USD-Oversold-on-Weekly-Fibonacci-Support-Test/) it was the 102 level that I wanted to see DXY trade through to illustrate bullish control following that oversold reading.
It took a few weeks, but last Monday saw an open door for bulls to make the statement move - but they fell 2 pips shy of the big figure and since then, sellers have taken more and more control of the matter.
This is where the proverbial plot thickens as there's now no oversold reading on the weekly DXY chart, and sellers have an open door to push for a major low.
On that front, we will likely need to see a breach of the 140.00 level in USD/JPY to allow for a push to a fresh low, and given the momentum in both USD and USD/JPY from the past week, that's not something that I would want to discount.
But next week is the final week of May trade and it's a big week for both markets. USD/CAD remains of attraction for USD bears given the longer-term range that remains in play there. - js
The currency hit a major spot of confluent support on Easter Monday and at that point RSI on the weekly was in oversold territory for only the second time in the past seven years.
As I had highlighted in this post (tradingview.com/chart/DXY/EKJbk5Gt-USD-Oversold-on-Weekly-Fibonacci-Support-Test/) it was the 102 level that I wanted to see DXY trade through to illustrate bullish control following that oversold reading.
It took a few weeks, but last Monday saw an open door for bulls to make the statement move - but they fell 2 pips shy of the big figure and since then, sellers have taken more and more control of the matter.
This is where the proverbial plot thickens as there's now no oversold reading on the weekly DXY chart, and sellers have an open door to push for a major low.
On that front, we will likely need to see a breach of the 140.00 level in USD/JPY to allow for a push to a fresh low, and given the momentum in both USD and USD/JPY from the past week, that's not something that I would want to discount.
But next week is the final week of May trade and it's a big week for both markets. USD/CAD remains of attraction for USD bears given the longer-term range that remains in play there. - js
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.