Traders and Investors,
The dollar (DXY) bullishness has not ended yet. As expected and last posted, dollar took a little correction and then started to move higher to rested previous highs around 109.355. This local structure is forming a W pattern inside an FCP zone so we should manage our long positions and ideally look for short positions. However a better level for the DXY (USDLLAR) to reach is 110 where we have multi year 78.6 fib level. This is also the upper level of the FCP zone of a multi year FCP (Fibonacci Confluence Pattern) W Pattern. Watch out for a divergence based set up where we see the price breaking through the previous immediate high to reach 110 or so but then starts to fall down.
Remember that at some point of time this strength in dollar will come to an end because:
1. There are several gaps left (around 90 too)
2. W pattern is about to get completed which can push the price down.
On the bullish side of the things, if 110 is broken and confirmed, we are looking at the possibility of extended W pattern which can push the price to 113 and may even 127 if further strength comes in.
Right now for the next week or coming days, I will be managing my long positions and take a few short positions for short term. This market is still bullish so I am not interested in taking long term short positions until I see a solid confirmation on daily or weekly time frames.
EURUSD had a historical even when it met the parity. However the bounce from that level was very subtle. It was much weaker than expected. This means that it was going to come back to retest the parity level and probably go lower than the previous low to collect stop losses. So beware of long positions on EURUSD.
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USDT: TJyAhd3Due7T21pGHp1NdTDGa7JH1oWRpQ (TRC20)
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