Critical DXY analysis! Where/what do we trade from here?
Updated
Strategist: Virginia TElphee
Where/what do we trade from here? Critical DXY analysis.
After a defined fall from the 98.5 level back in May to our current levels around 93. DXY maintains a current bias of downward continuation until proven otherwise.
It’s the proof we are interested in today.
Currently
From the previous year’s price action, and in earlier articles, we have clearly stated 93 will be a significant layer of support on our ride down. Now with price struggling to find clear direction, I’m seeing the best of the best TV traders jumping in on counter trend trades b/c the setups look good.
*Rant* Only to see these traders gain 100’s of views, comments and likes on a losing trade. Yet I have been posting pure gold for the last three months will an average of 7 likes. Since I’m not a pro member I can’t complain. *rant over.
Opinion
The key to successful trading for me has been letting go and understanding the law of compounding returns vs big gains and quick trades. Disconnect your self-worth from your trading. One is so much better cowardly taking a trade with a good setup b/c its over extended. Than to bravely take wild west trades, with no setup, because you think the pullback is going to be wicked.
We know how dangerous counter trend trading is! Why do folks believe this trend is over? Major banks and institutional funds have declared it ‘lethal’ to short the euro below 1.19! We aren’t even at 1.18 yet! In my experience, traders are watching too short of time-frames and hold very personal judgements on certain levels. Both have been well documented to wreak havoc on my trading plan
The market is going to show me and work for me or I’m not playing. That is the ONLY rule to trade by.
Strategy
Does DXY break 92? If so, we could go to the high 80’s. Long XXX/USD pairs. The proof will be daily closes below 92 with intraday test(s) of 93 to confirm downside.
Does DXY close above 94? If so, we will be watching for rejection around those levels to trade higher. Short XXX/USD pairs.
Risk ON – Indexes up. Gold down. DXY down. XXX/USD pairs UP. Vix down.
Risk OFF – Indexes down. Gold up. DXY up. XXX/USD pairs DOWN. Vix up.
Good luck and happy trading! Fall semester starts next week so my commentary will be cut back a bit, but Ill still be around!
Share, like and comment! Mostly FOLLOW!
Disclaimer: Trade at your own risk!
Where/what do we trade from here? Critical DXY analysis.
After a defined fall from the 98.5 level back in May to our current levels around 93. DXY maintains a current bias of downward continuation until proven otherwise.
It’s the proof we are interested in today.
Currently
From the previous year’s price action, and in earlier articles, we have clearly stated 93 will be a significant layer of support on our ride down. Now with price struggling to find clear direction, I’m seeing the best of the best TV traders jumping in on counter trend trades b/c the setups look good.
*Rant* Only to see these traders gain 100’s of views, comments and likes on a losing trade. Yet I have been posting pure gold for the last three months will an average of 7 likes. Since I’m not a pro member I can’t complain. *rant over.
Opinion
The key to successful trading for me has been letting go and understanding the law of compounding returns vs big gains and quick trades. Disconnect your self-worth from your trading. One is so much better cowardly taking a trade with a good setup b/c its over extended. Than to bravely take wild west trades, with no setup, because you think the pullback is going to be wicked.
We know how dangerous counter trend trading is! Why do folks believe this trend is over? Major banks and institutional funds have declared it ‘lethal’ to short the euro below 1.19! We aren’t even at 1.18 yet! In my experience, traders are watching too short of time-frames and hold very personal judgements on certain levels. Both have been well documented to wreak havoc on my trading plan
The market is going to show me and work for me or I’m not playing. That is the ONLY rule to trade by.
Strategy
Does DXY break 92? If so, we could go to the high 80’s. Long XXX/USD pairs. The proof will be daily closes below 92 with intraday test(s) of 93 to confirm downside.
Does DXY close above 94? If so, we will be watching for rejection around those levels to trade higher. Short XXX/USD pairs.
Risk ON – Indexes up. Gold down. DXY down. XXX/USD pairs UP. Vix down.
Risk OFF – Indexes down. Gold up. DXY up. XXX/USD pairs DOWN. Vix up.
Good luck and happy trading! Fall semester starts next week so my commentary will be cut back a bit, but Ill still be around!
Share, like and comment! Mostly FOLLOW!
Disclaimer: Trade at your own risk!
Note
8/16/17 No clear direction. However I'm seeing signs of rejection and will think about trend trading tomorrow, assuming we close below 93.90.Note
Short USD. No caution. Long XXX/USD pairs, short USD/XXX pairs.Note
Note
High 80s established. 
Disclaimer
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