16. A lesson in Harmony (Part 2/3)

Updated

HI traders,
The picture looks nice and says it all.
I do not have to add anymore words to it.

Lets continue to track this especially when US CPI is going to be released today.

Happy trading.

P/S : As usual do not not just believe what I say. Use your own common sense. :)

Note

Many would panic. Many would have lost money with such wild swings in the last 3 days. But always remain objective and try to see things clearly and look for facts.

Dollar up against Euro. But
1) Gold is UP sharp. DXY trade inverse to Gold.
2) US10Y-DE10Y is DOWN sharp. DE/Euro zone longer term prospect looks better.
3) US10Y-US02Y is DOWN sharp. You should know what it means if it < 0%
4) DE10Y-DE02Y is UP sharp. DE/Euro zone longer term prospect looks better.

Now next month would be the big FED decision to raise rates. Some say by 0.5 instead of the usual 0.25. But
According to CFTC:
Speculators' net long positioning in the U.S. dollar dropped in the latest week to its lowest since mid-August 2021, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.
The value of the net long dollar position fell to $7.81 billion for the week ended Feb. 8 from $9.78 billion the previous week. U.S. dollar net long positioning fell for a fourth consecutive week.

Price is now still within the support zone. Also, the medium term POC is at 1.1308.

Now, I want us to look at this interesting price action on 11 Feb 2022 when price reached the top at 1.1495. When the US CPI numbers were released, Sellers try to take control by immediately driving down price. But very soon all sellers were taken out and defeated right to the top.

The coming weeks would be exciting and provides good opportunity for profit.

i_am_siew

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