Why do I love the dollar index? Because I mostly trade majors, and DXY helps me understand what to expect from my usual pairs. Also with the negative correlation with Gold, we can expect a continuation of the bullish move on Gold. I have other aspects I look at before committing funds to trade. DM for more details.
The final analysis is based on H1. Last week price broke above the 64 MA and is currently consolidating around that zone which happens to be the 23.8 Fib level. Due to the fact that the USDX is bearing for this coming week, I’m expecting the price to test the 38.2 Fib level before the end of the week.
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EUR/USD breaking higher despite the ECB’s dovish stance. The European Central Bank (ECB) recently underscored its dovish stance by sharing that downside risks have proven “somewhat longer lasting” than previously expected. Draghi and Co also said that it’s ready to “adjust all its instruments” in case of weaker growth and inflation prospects. In addition, it...
The Japanese Yen finished October as the top performing major currency, gaining at least +2% versus six of the other seven major currencies last month, including gains of greater than +3% against two of them (EUR/JPY -3.17% and EUR/CHF -3.31%). The fundamental conditions that have catered to Yen strength - the aggregate impact of tightening monetary policy,...
The Canadian Dollar is having its best day since September 28 (when it became clear Canada would join the United States and Mexico in the USMCA) after the Bank of Canada not only raised rates by 25-bps – a move that was widely expected, with overnight index swaps pricing in a 92% chance ahead of the meeting today – but offered its clearest signal yet that it was...
The Japanese Yen finished right in the middle of the pack, gaining and losing ground against three currencies each. Despite stagnating last week, the Yen remains the best performing currency in October, and remains poised for further outperformance ahead.
So far, through October, CAD/JPY is the worst performing pair, down by -2.49%, followed by AUD/JPY (-2.45%)...
ENTRY: 0.76208
TP: 0.76415
SL: 0.76008
You could wait for price to close above 0.76208. After which you can enter with a 20 pip Take profit. Risk to reward ratio is 1:1
NZD has had a very strong start to the day and will most likely push for the next couple of hours before the US season. Our trade gives us about 15 to 20 pips.
Entry is at 0.64842
TP: 0.64993
SL: 0.64701
The GBP has been on a bullish rally despite the negative news earlier this morning. After closing above the most recent high it confirmed the buy signal.
148.969 entry from which you can hold for about 25 pips.
Sl: 148.628
Tp: 149.322
CAD experiencing very little activity today as it is also a holiday in Canada leaves room for stronger currencies to gain some ground. AUD has had a lovely start to the week with a strong bullish push in the early hours of the day. If price breaks 0.91859 and closes above that zone it would be a great opportunity to enter the market to grab 30 pips at the Zone 2....
