So trading is headline driven... If you have been trading GBP pairs you’ve know all about the tape bombs or headline whiplash moves. It’s hard to get in a trade when a headline can just drop or jump by 100 or more pips regardless of technical setups. But we’ve somewhat known the with Brexit and any of the possibilities there of, things were going to get volatility rolling.
So here is another Forex Trading Snack.
At first I was caught wrong sided, then managed to get all of my losses back off a pull back trade, then missed getting in long before the next tape bomb hit... blah, blah, blah! I know! All of the should have, and could have trades, that didn’t hit!
This brought my attention to the DXY and patterns I’ve been following for some time. Well today the pattern started to break down. Here is the landscape view of my DXY
It is very similar to the EURUSD just inverse.
Last Friday I had taken a very small long play on the EURUSD at the 1.10 level. Manage to move stops to BE ( Break even, no risk on trade ) but I’m looking to add to this position.
If the DXY is breaking down it should test the 97 area, where its up channel lower trend line is currently. If or when that should happen, it would be reasonable to think the EURUSD would also test its upper trend line of a descending wedge pattern it has been in, and that is around 1.12-35 ish
So long as EURUSD stays above the 1.1030 area recent resistance level I see the odds shifting to it going higher towards that 1.12.
There is one question I have with the DXY index though. Just how much of it’s recent moves have only been due to GBP pairs, because they have really moved where EURUSD which is over 50% of the index hasn’t moved all that much in comparison.
If you trade any idea, the risk is all yours.
In trading you either make dust or you eat dust.
All the best my trader warriors.
