The daily trend has turned down for the DXY here, weekly uptrend has ran its course and will expire next week suggesting a 15 week mean reversion move towards 92.74 could be in the cards if the quarterly resistance level above holds. I've taken a few positions in the Euro, Pound and Aussie dollar pairs, but the Dollar Index itself suggests we can take a position in it using futures, or simply adding the Yen in the equation to have a similar basket (I'm short Yen vs the Pound and Euro myself, it has a better reward to risk profile). I do like to engage in analysis using this chart though, it's highly useful and has served me well historically.
Best of luck,
Ivan Labrie.
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Here's the daily setup in the index:
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Daily trend is down, weekly will soon follow.
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Starting to move as expected...it was impossible to hold the daily chart, as it faked me out a few times, but weekly can trigger either going lower this week, or by next week by staying down all week. I'm more interested in the precious metals here, since they have better reward to risk in the case of a move in the dollar index.
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This ran its course, expired and we get this down swing now...
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Signal fully confirmed:
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Starting to look more like a buy now, many pairs are failing to rally agains the dollar and yields going up. I'm out of dollar shorts.