THE NEXT MOVEMENT WILL CONFIRM A BIG BULL MARKET IN GOLD. It is simple. Price are usually weakening before fed meeting. Prices may bounce a little or continue to consolidate. The next low should arrive around the time of the March Fed meeting. WE ARE AT A FLECTION POINT FOR THE DOLLAR . GOLD BREAKOUT IS LINKED TO A BREAKDOWN IN THE DOLLAR BELOW 88. I am a strong believer in correlations market. Usd/zar is collapsing right now with the same 2001 pattern, so what we should expect?
Yes, dollar will continue to go down.
Dollar_index
Dollar Index (DXY) - Completing the Correction - Bull then BearDollar Index (DXY) is currently trading within a Complex Corrective Structure (WXY), with the last piece remaining to unfold on the Bullish side.
After this scenario would be validated, I would be expecting a last Bearish Trend (which could be significant), thus leaving room for EUR/GBP/XAU/XAG to complete their last Bullish Swings for each of their Cycles.
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Many pips ahead!
DXY DOLLAR INDEX At the current time of typing this the dxy seems to have found some temporary support. it may gather enough momentum to test the upside channel trendline however we would need to see at least a daily/strong bullish h4 close above the resistance to confirm it is now a support for this index. alternatively if we break below the current zone there is definite scope for price to hit the daily pink trendline.
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DXY dollar strength should continueThe strengthening of the dollar should continue now that the possibility of a government shutdown is behind us. We should see the dollar reach the 89.40 area. If we can hold there price will continue to around 90.00. The key figure to watch with this rally will be Thursday's CPI inflation data. We should see an on par or better than expected figure but if not. Expect price to show it and for the DXY to turn south and break the 88.50 area and even possibly the 88.20 area for a new low.
Trade idea becomes invalid if price doesn't hold the 88.90 area on the small pullback coming.
As always do your own due diligence and homework when it comes to trading. Have a plan and stick to it.
Keep calm and forex
Dollar moving towards weekly structure zoneThe Dollar Index's correction move continues today as DXY is getting hammered after failing to hold above the Fast MA (support)
A double bottom scenario inside the PRZ of the bullish pattern in now in focus as DXY is about to re-test a weekly structure zone and the weekly uptrend line
EURUSD bearish RSI Divergence and Double topComing week will be interesting for DYX pairs, most of them are in bearish RSI divergence. EURUSD in the manner is in bearish divergence in addition to formed a potential double top in H4 time frame. Break of the up trendline will give a nice risk reward opportunity for coming week. If you dig more there might be much more promising dollar pairs with bearish RSI divergence setup formed for next week up on the rise of dollar end of last week. Happy trading !!!!
Is this the end of US Dollar's Bear Run?DXY experienced such a roller coaster day yesterday, starting from a Draghi's hawkish speech which push Euro even higher to Trump's statement saying he is expecting a strong dollar, which helps DXY to gain temporary bullish momentum.
If I see from the chart here, Trump's statement has helped pushing DXY to break over 78.6% fibo extension line (89.17 level), hitting the ceiling at 61.8% retracement (89.56 level) and is now retracing back to 89.17 level. At this point, it is really hard to predict if this is really the end of bear's run for US dollar. From daily chart, I can see bottoming tail, which indicates a strong rejection to the downside. Long term wise EMA(200), I'm still bearish on US Dollar. It is now interesting to see how DXY reacts to 89.17.
To add on, RSI(14) forms a hidden divergence which indicates a downtrend continuation now. It is interesting to see:
1) If there is any reversal price action around 89.17, short term wise will be bullish for DXY at least until it hits 89.56
2) Otherwise, the bear will still continue to push DXY even lower.
The deceptive US DollarThe DXY has found some support following a recent dramatic fall. This seems more like a retracement in a primary downtrend rather than a reversal and I wouldn't go long at this point unless:
1. it breaks through the major resistance line and stays above it AND
2. breaks through and stays above the supply zone