What's happening
Last week marked the beginning of the continuation of the long-term downtrend in safe-havens. The market already offered short-term momentum opportunities at the initial move after DXY broke down the last support at 91.75.
Currently, we're experiencing the first stop or apparently a minor pullback in the global risk assets, as each major asset tests its respective resistance level (support in case of safe-havens). DXY is mildly rebounding from the support around 90.50.
Traders should be ready for decisive actions this week as the trend in risk assets (or a downtrend in DXY) may resume in any moment.
Action plan
There are two major price action scenarios I'd be interested in trading:
a)Breakout of the current resistance level and the trend continuation. In the case of Indices, it pertains only to those, that are not overextended, such as DAX, S&P500 & NASDAQ100. If you look at Nikkei 225, it's been one of the strongest Asian markets since the beginning of November, so it'd be natural if it corrects before the trend continuation.
b)Reversal of the short-term uptrend of the safe-havens in the context of selling the pullback of the long-term downtrend. For example, if DXY approaches 91.75, look for short-sell setups in USD and JPY pairs.
Last week marked the beginning of the continuation of the long-term downtrend in safe-havens. The market already offered short-term momentum opportunities at the initial move after DXY broke down the last support at 91.75.
Currently, we're experiencing the first stop or apparently a minor pullback in the global risk assets, as each major asset tests its respective resistance level (support in case of safe-havens). DXY is mildly rebounding from the support around 90.50.
Traders should be ready for decisive actions this week as the trend in risk assets (or a downtrend in DXY) may resume in any moment.
Action plan
There are two major price action scenarios I'd be interested in trading:
a)Breakout of the current resistance level and the trend continuation. In the case of Indices, it pertains only to those, that are not overextended, such as DAX, S&P500 & NASDAQ100. If you look at Nikkei 225, it's been one of the strongest Asian markets since the beginning of November, so it'd be natural if it corrects before the trend continuation.
b)Reversal of the short-term uptrend of the safe-havens in the context of selling the pullback of the long-term downtrend. For example, if DXY approaches 91.75, look for short-sell setups in USD and JPY pairs.