Looking at the DXY ( Dollar Index ) we have a clear rejection off the descending trend line and 78.6 Fibonacci level so I see shorts across majority USDxxx pairs. I believe we can see plentiful downside momentum however we must be aware of NFP.
On the chart, you can see I have marked up the 71/88.6% Fibonacci level in the green zone where price has currently rejected. I will be looking for a retest of either the ascending or descending trend line with a clear rejection and candle stick reversal pattern. I have one entry open off the 71% Fibonacci level however I may scale in another entry if price retraces higher. ( My risk management allows me to do this so do not stack trades if it will damage your account or psychology )
We have broken the uptrend creating a lower high ( also the right shoulder ), thus bringing price down to create a lower low and now an anticipated lower high off our C retracement. This will allow price to see the 109.750 key level and a potential 100+ pips further if we break below and hold this bearish momentum as I expect.
As we are seeing a deep retrace met on this pair, the risk:reward ratio is great, however remember or note down highly volatile news events such as the NFP on Friday. This may cause consolidation in the market so partial profits will be taken and Stop losses will be adjusted according to price action.
As always, use risk management wisely and have a great week !
On the chart, you can see I have marked up the 71/88.6% Fibonacci level in the green zone where price has currently rejected. I will be looking for a retest of either the ascending or descending trend line with a clear rejection and candle stick reversal pattern. I have one entry open off the 71% Fibonacci level however I may scale in another entry if price retraces higher. ( My risk management allows me to do this so do not stack trades if it will damage your account or psychology )
We have broken the uptrend creating a lower high ( also the right shoulder ), thus bringing price down to create a lower low and now an anticipated lower high off our C retracement. This will allow price to see the 109.750 key level and a potential 100+ pips further if we break below and hold this bearish momentum as I expect.
As we are seeing a deep retrace met on this pair, the risk:reward ratio is great, however remember or note down highly volatile news events such as the NFP on Friday. This may cause consolidation in the market so partial profits will be taken and Stop losses will be adjusted according to price action.
As always, use risk management wisely and have a great week !