USD Indx - Should we long USD in general? Is it a pivot point?
Let's try to look at it from pure technical perspective.
Daily: USD Indx had a nice rally from the lows at 79, and quite a correction from the top at 81. What do the indicators show now?
Ichimoku components: Price is at the Kumo, two days ago the bottom of teh cloud provided a good support. Tenkan below Kijun, but bothe lines are above the Kumo. Chikou Span is below price and in the Kumo. This is a hard situation, but in general until the Price doesn't break below the Kumo, we can not consider it as bearish. Actually it has become neutral now after the corrective counter wave.
Meanwhile Slow Stoch became oversold, and yesterday gave a buy signal, MACD may slowly turn up again. DMI is neutral/bearish, but can easily give a bullish cross.
As I marked on the chart, it is very similar to the Kumo retest and reversal that happened in early April on the other side. From these levels I give a bigger chance for a spike up, then for a further dip. What we have to look for now is the lower, 4 Hrs time frame. In case price can not print a lower low there, which also means price would not break below the Kumo on daily chart, then Bulls may get back in control.
The important levels are clear: lower suppoprt is 79,75. Upper resistances are 80,21 / 80,39.
My recommendation is to wait for one more dip within current daily Kumo, watch if price prints a lower low on 4 Hrs, and if not, then start to build long positions in smaller clips. Later if we see a clear bullish break on 4 Hrs (which will be likely supported by daily technicals too by then), size up the longs.
p.s.: Today is going to be important, since the EURUSD is the major component within USD Indx, and again there is a good chance Draghi will try to talk EURUSD lower somehow.
Daily: USD Indx had a nice rally from the lows at 79, and quite a correction from the top at 81. What do the indicators show now?
Ichimoku components: Price is at the Kumo, two days ago the bottom of teh cloud provided a good support. Tenkan below Kijun, but bothe lines are above the Kumo. Chikou Span is below price and in the Kumo. This is a hard situation, but in general until the Price doesn't break below the Kumo, we can not consider it as bearish. Actually it has become neutral now after the corrective counter wave.
Meanwhile Slow Stoch became oversold, and yesterday gave a buy signal, MACD may slowly turn up again. DMI is neutral/bearish, but can easily give a bullish cross.
As I marked on the chart, it is very similar to the Kumo retest and reversal that happened in early April on the other side. From these levels I give a bigger chance for a spike up, then for a further dip. What we have to look for now is the lower, 4 Hrs time frame. In case price can not print a lower low there, which also means price would not break below the Kumo on daily chart, then Bulls may get back in control.
The important levels are clear: lower suppoprt is 79,75. Upper resistances are 80,21 / 80,39.
My recommendation is to wait for one more dip within current daily Kumo, watch if price prints a lower low on 4 Hrs, and if not, then start to build long positions in smaller clips. Later if we see a clear bullish break on 4 Hrs (which will be likely supported by daily technicals too by then), size up the longs.
p.s.: Today is going to be important, since the EURUSD is the major component within USD Indx, and again there is a good chance Draghi will try to talk EURUSD lower somehow.
