See the three touches on the upper trend line. If this line holds, the DX price could move down to the 98 area. Also the RSI (10) is overbought.
Such a chart could be used to short the DX, or to go long the EUR/USD and the precious metals such as gold, silver, platinum.
If I were to trade the DX short, I would place an extra big stop loss, maybe at 103.90 or at 104 (maybe even higher) in case of some stop hunting/a shake out before a big move down. Then would carefully add on to a profitable position. Same for going long the other choices: use a big stop loss.
(A strong close above the upper trend line would not be good for this trade; a peek-a-boo move that does not actually close above the trend line means the trade is still viable. Also, a daily close below the 103 area would help confirm this trade idea.)
Good luck!
Such a chart could be used to short the DX, or to go long the EUR/USD and the precious metals such as gold, silver, platinum.
If I were to trade the DX short, I would place an extra big stop loss, maybe at 103.90 or at 104 (maybe even higher) in case of some stop hunting/a shake out before a big move down. Then would carefully add on to a profitable position. Same for going long the other choices: use a big stop loss.
(A strong close above the upper trend line would not be good for this trade; a peek-a-boo move that does not actually close above the trend line means the trade is still viable. Also, a daily close below the 103 area would help confirm this trade idea.)
Good luck!
Comment:
Not looking good for this trade idea. Actually a strong daily close above trend line could be a good time to go opposite the original ideas.
Comment:
Metals are inversely correlated to the dollar but only the EUR is highly such.
Comment:
Although trend line e did not hold, there was a double top along with rsi signal, so dollar may still do down from this area.