Weekly report DXY: Short idea.
The price had touch the upper part of the channel, which one had been respected since the trade war begin, the price ending on friday with an undecision canddle after a big upside movement, forming a possible trunctation process according elliot wave principles.
In the fundamental side:
Last week Donald Trump said that the trade deal with China could happen sooner than people think, this comment gave gas to the dollar index price to rally an strong movement to the upside. But now, on friday Trump is expecting to place restrictions and controls on US investors in China startup and companies, this is a double-edged weapon, because can hurt very bad both countries, but in special to China, because they need this support to fundraise appropriately their projects, so this can give a negative impact to the price for this week ahead.
In the technical side:
The price reach the upper part of the channel with an undecision daily canddle closed on friday. this can give us an idea to go short, but no expecting an extended target such as before, the target could be 98.47 in a first place, forming a risk reward ratio 2:1 aprox, we need more information from fundamentals news to see what is going to happen in the week ahead.
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.