USDOLLAR - Short at Bat Pattern- Daily: expect to test the bottom.
- H4: being in Elliot 3 wave zones and Bat Pattern. However, RSI still shows signs of testing the old peak H4.
- H1: there was a downward force.
* Target 1, 2, 3: 38.2, 50, 61.8.
USDOLLAR trade ideas
Usd Index, Could 12262 Hold??
Per the CPI news that came from the US economy, It pushed price to the downside below the 12262 support but later closed above the psychological level of the same 12262 region. Hence there is a potential move to the upside of 12316 region. Thus anticipating some level of dollar strength coming in across the major usd pairs.
Possible Move DownThe Index seems to have finished the B wave of the 3 wave ABC corrective pattern. It is highly likely that the index will now make a C wave, going down to retest the levels close to A. Once this correction is done, it could continue to move up. In the short term, I am looking at the index making one move down from the current levels.
USD - Bullish Breakout Ascending TriangleIn my opinion, USD has a higher probability to breakout to the upside based on several reasons listed below. It’s also trading within an ascending triangle, and has been consolidating for the last couple of trading sessions, both of these signals are bullish to me given the economic backdrop in the US currently.
1.) Still strong US economy, based on the slew of positive economic data we’ve been seeing. Examples would be low jobless claims, good nominal wage growth and low inflationary pressures.
2.) Long end interest rates (10 yr) are rising due to reduced investor fears, which means a positive economic outlook for the US. Higher expected economic growth leads to a strong dollar.
3.) Corporate earnings are likely to keep surprising to the upside, since projections have been lowered so much over the last few months. Again, improving economic projections.
4.) More likely for positive rather than negative news to come out regarding US-China trade deal. Both sides are committed and evidence suggests a positive outcome.
USDOLLAR before 1.32% increase... I had to change the previous analysis. Because the circumstances have changed. Based on the current ATR data, I expect another rise in the exchange rate. The type and size of the wave structure may be similar to a previous (yellow rectangle) structure. The ratio of its price movement to the ATR is similar to the current wave structure. Therefore, the target price for the currently rising exchange rate may be around 12415.
