EURUSD pair and DXY convergence
To add to the growing list of evidence against the strength of the EURUSD pair, a quick look at it's daily chart shows a convergence between the US dollar index and the pair.
The 4-hour chart shows a crossover between the two on 9/26 and the two are now diverging, signaling weakness in the lower level trends.
The weekly chart shows similar weakness in the mid level trends.
https://www.tradingview.com/x/uAVuf8f4/
However, keep a close eye on the 1.14 levels. This was where a breakout occurred on the weekly renko chart. We could see a turnaround. Due to the volume spikes on the down days, it leads me to believe this was a period of distribution and the breakout around 7/10 was false and a move past 1.14 is likely. Economic indicators that I discussed in a previous post support a move lower as well. But, again, we will need to watch what the price does around the 1.14 level. Know one knows for sure; that's for sure.
Here's the renko weekly chart I used to get the s/r level.
Happy Trading!!
The 4-hour chart shows a crossover between the two on 9/26 and the two are now diverging, signaling weakness in the lower level trends.
The weekly chart shows similar weakness in the mid level trends.
https://www.tradingview.com/x/uAVuf8f4/
However, keep a close eye on the 1.14 levels. This was where a breakout occurred on the weekly renko chart. We could see a turnaround. Due to the volume spikes on the down days, it leads me to believe this was a period of distribution and the breakout around 7/10 was false and a move past 1.14 is likely. Economic indicators that I discussed in a previous post support a move lower as well. But, again, we will need to watch what the price does around the 1.14 level. Know one knows for sure; that's for sure.
Here's the renko weekly chart I used to get the s/r level.
Happy Trading!!
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