Dollar vs Foreign Currencies: Can we put our Risk's off?
Updated
EURUSD was weak for most of 2021, and the yearly high developed in January. The trend lower wasn’t the cleanest overall, but there were certainly periods where one-way momentum was strong. 9 red months, 3 green months, with a major retracement during April. What is seen as the big deciding factor for the general trading bias is how DXY responds to the (96.753 - 95.99) zone moving forward. It’s not just a psychological level, it’s a real level that has been in play on numerous occasions since 2018. At times it has acted as both strong support and resistance. (96.753 - 95.99) is currently viewed through the lens of resistance as it was recently held for the first time since June 2020. The emphatic bounce off (96.753 - 95.99) in November and December shows that its importance as a major level hasn’t waned with time. While the 2021 trend remains bullish for USD, if the level continues to hold there is reason to at least be neutral, and that could change to a more bearish outlook with time. A meaningful break below 75.70 on a weekly closing basis, however, could usher in another wave of selling during Q1 2022.
Trade closed manually
I just closed the trades and moved in the opposite direction. The commitment of traders looks like the commercials are on the short. I'll need to watch those videos again, but for now, this looks like a sell pattern I'm familiar with. Risk Off
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