British Pound Currency Index (BXY) is overall bearish do to economic fundamentals. And, the U.S. Dollar Currency Index (DXY) is safe haven currency that has outperformed all major currency indices, as traders pull their capital out of risk assets i.e., SPX showing a risk overall risk off sentiment. The S&P 500 (SPX) finished the day up 2.29%. However, the only thing the stock market has going for it is the Federal Reserve. I believe the Equities Market is running on delusional bullish trading sentiment.
Still.
As the DXY gains strength due to the rush to safe haven currency, natural the counter currency will fall bearish over all. Thus we are looking for selling opportunities. The BXY is finding major resistance at the Daily Pivot 123.3, while the DXY breaks the Daily R1 Pivot Points, clearing out the chop zone between Daily R1 and Daily S1 Pivot Points, showing a sight bullish trend.
Looking for our bearish opportunities, I have located a POTENTIAL two trade setup.
The first being a Bearish Butterfly Pattern from the (X) April 21 swing high @ 0200 CST to the (A) April 21 1100 CST. The (B) leg comes in at the .786 Fib Retrace Exactly with a wick hit. Followed by the (C) leg of .682 exactly.
Now all we could do is project the (D) point and wait to see if price action breaks the (B) point to verify the pattern. (D) comes in at 1.24697, where the trad will be entered, aiming for two targets at T1 = Around 1.23877 and T2 = 1.2335. We should note here that in order for the pattern to make it to (D), it has to return through some heavy resistance areas including the monthly pivot of 1.24056.
Now here comes the 1-2 punch....
We now that the right side of the harmonic pattern it forms a Triangle.
The second trade is for when price action breaks the Symmetrical Triangle to the down side, around 1.23264.
Play the break with T1, being the length of the mouth of the triangle, around 1.21630.
Still.
As the DXY gains strength due to the rush to safe haven currency, natural the counter currency will fall bearish over all. Thus we are looking for selling opportunities. The BXY is finding major resistance at the Daily Pivot 123.3, while the DXY breaks the Daily R1 Pivot Points, clearing out the chop zone between Daily R1 and Daily S1 Pivot Points, showing a sight bullish trend.
Looking for our bearish opportunities, I have located a POTENTIAL two trade setup.
The first being a Bearish Butterfly Pattern from the (X) April 21 swing high @ 0200 CST to the (A) April 21 1100 CST. The (B) leg comes in at the .786 Fib Retrace Exactly with a wick hit. Followed by the (C) leg of .682 exactly.
Now all we could do is project the (D) point and wait to see if price action breaks the (B) point to verify the pattern. (D) comes in at 1.24697, where the trad will be entered, aiming for two targets at T1 = Around 1.23877 and T2 = 1.2335. We should note here that in order for the pattern to make it to (D), it has to return through some heavy resistance areas including the monthly pivot of 1.24056.
Now here comes the 1-2 punch....
We now that the right side of the harmonic pattern it forms a Triangle.
The second trade is for when price action breaks the Symmetrical Triangle to the down side, around 1.23264.
Play the break with T1, being the length of the mouth of the triangle, around 1.21630.
Comment:
Entry for Symmetrical Breakdown to 1.23106.
Comment:
Entry for Symmetrical Triangle Breakdown moved to 1.23175. I will trail it up to increase my profit taking, still minimizing my risk. The Symmetrical Triangle trade is 1 of the 2 trades we have POTENTIALLY identified. News to break @ 330 CST. PMI Figures are forecasted to show contraction. The entry will probably be moved up again as we trail.
Comment:
1.23228 New Entry on swing of Symmetrical Triangle. Long-term Bear still in play.
Comment:
Symmetrical Triangle abandoned.
Trade active:
Bat Pattern activated.
Stop: 1.24697
Entry: 1.24697
T1: 1.23849
I will take off half my position at T1 and let it run.
Stop: 1.24697
Entry: 1.24697
T1: 1.23849
I will take off half my position at T1 and let it run.
Trade closed: target reached:
T1: adjusted to 1.23895
Stop loss moved to 1.24697.
Profit realized @ 1.23895, price action took out entry. Position closed.
Stop loss moved to 1.24697.
Profit realized @ 1.23895, price action took out entry. Position closed.