$DXY: Have The Bears Decided to Join the Party?
Ok… So the week ended and our mate USD decided to bounce off a key resistance level. At the same time, a beautiful looking Doji formed, which tells me that the market either has no clue where the next move is at or the bullish trend is about to end and a reversal is about to take place (see chart).
I've said before that “IF price ends the week below this level, then USD bulls may have exhausted themselves and USD bears may be about to step in”. I've also said that there have been three clear instances (now four) when price bounced off this resistance level.
Now you might be thinking “great, I’m going to sell this baby”… Before you jump into the water, I would be waiting for one more signal to confirm that a trend change has occurred (or not).
While the market was creating the Doji, it also decided at the same time to close above the 95.198 level, which used to be a mildly strong resistance level.
Therefore, what we have here is (1) a Doji that has formed at a significant resistance level and (2) price closing above 95.198, of which is a mildly strong resistance level.
For now, I’m not going to buy or sell USD when the market open’s on Monday… That would be crazy. As I said above, I need one more signal.
Read more here: Have USD Bulls Run Out of Steam or Is This Just The Beginning?
About me: Based in Melbourne Australia, I have been trading Forex for around three years. My real name is Andrew, I’m Australian born and trade Forex part-time.
Follow me: andrewfx2020.com/
Twitter: twitter.com/Andrewfx2020
I've said before that “IF price ends the week below this level, then USD bulls may have exhausted themselves and USD bears may be about to step in”. I've also said that there have been three clear instances (now four) when price bounced off this resistance level.
Now you might be thinking “great, I’m going to sell this baby”… Before you jump into the water, I would be waiting for one more signal to confirm that a trend change has occurred (or not).
While the market was creating the Doji, it also decided at the same time to close above the 95.198 level, which used to be a mildly strong resistance level.
Therefore, what we have here is (1) a Doji that has formed at a significant resistance level and (2) price closing above 95.198, of which is a mildly strong resistance level.
For now, I’m not going to buy or sell USD when the market open’s on Monday… That would be crazy. As I said above, I need one more signal.
Read more here: Have USD Bulls Run Out of Steam or Is This Just The Beginning?
About me: Based in Melbourne Australia, I have been trading Forex for around three years. My real name is Andrew, I’m Australian born and trade Forex part-time.
Follow me: andrewfx2020.com/
Twitter: twitter.com/Andrewfx2020
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