US Dollar breakoutIs that a breakout or what, like I said put an eye on the chart and an ear on the fundamentals.
Manage your trades!!!
USDOLLAR trade ideas
USDOLLAR Rallies In Longer-Term DowntrendThe above charts show FXCM's USD index - the USDOLLAR. The left chart shows the daily time frame. It is evident that the current trend remains down, until proven otherwise.
1. Price is below the cloud.
2. The cloud remains light pink in colour.
3. Price is below the black base line.
4. The black base line is trending down.
5. The orange lagging span is comfortably below price.
The right chart shows the H1 ichimoku of the USDOLLAR. The index has pulled back in the shorter term.
1. Price is approaching pink cloud resistance.
2. Price is above the black base line.
3. The black base line continues to move downwards.
4. The orange lagging span is at price.
The pullback is largely driven by fear creeping back into the market following comments by White House health advisor Dr Anthony Fauci noting that some US states are seeing a “disturbing surge” in coronavirus infections. Cases have increased by 5% or more in 26 states and hospitalisations are rising too.
To this end, we are closely watching the H1 ichimoku for any bearishness, which will realign the short-term chart with the daily. If this does not happen, the prospect of economic disarray cannot be ignored as the possibility and impact of a second wave is considered by market participants.
Past performance is not an indicator of future results
CHART SOURCE: FXCM MARKETSCOPE 2.0
USDOLLAR's EMAs Reverse on Daily timeFurther to our previous article , FXCM's USD index, USDOLLAR, has reversed its technical makeup. The EMAs are looking to turn negative (green ellipse). If the EMAs develop angle and separation to the downside the green 5-day EMA will be below the orange 13-day EMA, and the orange 13-day EMA will be below the black 34-day EMA. This will be a testament to the Fed's unlimited QE policy, which is looking to devalue the greenback. As long as the USDOLLAR continues to churn sideways the EMAs will continue to whipsaw. We will watch the situation for a trend to develop; this which will make price action clearer.
USDOLLAR Down Trend Continues But Is OversoldFXCM's USD index, the USDOLLAR remains in a downtrend. The left chart shows the daily time frame and the index is below its black 20-day SMA. The SMA is also pointing down confirming the downwards pressure. We note that the RSI is well below 20 and is oversold (blue rectangle). Moreover, we are looking to see of the index is at support (red shaded horizontal). The right chart shows the RSI at 50 and the hourly EMAs on top of each other. We are looking to see how these resolve because if the EMAs cross bullishly and the RSI moves above 50 than it suggests that we are at the support level as denoted by the red shaded horizontal. We continue to watch.
Structural change in USD vs GBP and EUR (post covid stagnation)USD has made a substantial "lower low" and this is matched by the EUR making a substantial "higher high".
However GBP is failing to keep pace and is not making the higher high...
USD also coming into some lows as NFP approaches tomorrow.
I anticipate USD to drive down to complete the sell-off and then we may see a bullish shift (and bearish EUR +GBP etc).
As for signals - look for daily swing lows (USD) and daily swing highs (EUR + GBP).
FX:USDOLLAR
FX_IDC:EURUSD
FX:GBPUSD
US Dollar DJ Index- Hiting long term uptrend support levels. Dow Jones FXCM Dollar Index was a measure of the U.S. dollar’s value equally weighted against four of the world’s most liquidly traded currencies:
Euro (EUR), 25% weight
British Pound sterling (GBP), 25% weight
Japanese Yen (JPY), 25% weight
Australian Dollar (AUD), 25% weight
The DollarDear Traders,
It has been a while that I shared my dollar views. Before price broke out of the daily range, I was extremely bullish for the dollar, but since we tanked there was not much to do regarding planning a bullish trade.
However, price finally found our daily demand area, combined with the weekly long-term trendline, which will probably push this dollar higher towards at least 12480.
Keep your eyes on it and look for plays on EU. The intra-day charts for USDollar already showed us some bullish pressure, EURO should provide the same later today for a potential move.
Best regards,
NewCapitalFX
USDOLLAR Downside Momentum Increases On the DailyThe above chart shows FXCM's USD index, the USDOLLAR. It is below its EMAs, with the green 5-day EMA below the orange 13-day EMA, and the orange 13-day EMA below the black 34-day EMA. Moreover, all three EMAs are showing angle and separation to the downside (red ellipse). This is a sign of strong downwards momentum and as long as this formation holds weakness is likely to persist. We also note that the support around the 12,420 level (green shaded horizontal) has been broken to the downside. If price drops further, this level is likely to evolve from support into resistance.
Titán Elliot Views on USDOLLAR INDEXPosible Corto al finalizar triangulo contracto.
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