doller index buy or sell you make your mind up Doller index indicated if it was a sell on the daily timeframe
Index-dxy
USD Devaluation driving Oil Price Rallly and Gold StrengthThe recent devaluation of the USD is serving purpose to make way for future rate hikes by the FED without causing EM volatility and issue with China's currency peg. As the USD devalues it also pushes up Oil prices which provides relief for entities with Oil based junk bond exposure (Aka US banks).
I see the devaluation as a short / medium term trend as a relief valve for policy normalisation. It should also stoke up some inflation to further give strength to the 'recovery' dialogue.
Cypher Pattern ,USD Index, 1hr Here we see a solid Cypher pattern on the dollar index. the reason i have elected this trade is because the cypher pattern here suggests the market will complete the larger crab pattern on the daily chart.
I believe that this completed cypher pattern will rally short all the way down into the 1.618 extension of the BC leg.
I have placed my entry at the lowest high of the cypher pattern, my stop is placed at the highest high of the pattern, and my limit is placed at the 1.618 extension.
The big picture here is a retracement down into around 89.2 and then a reversal to continue in an uptrend. but short term, we can make a few bucks on the way down.
Thanks for checking in, please feel free to comment your own opinions, like if you agree and follow me for more trades.
Thanks again and Good Trading
