As mentioned in my long term analysis previous idea about DXY (Related Idea), I mentioned how there is no major resistance between now and ~120 level. Now, I have come across another clue about why that idea is still valid and we are nowhere close to a major reversal on gaining strength of USD.
We recently witnessed a sudden weakness in the strength of USD owing to some intervention on a global scale which pushed metals and other currencies up against USD. Turns out that it was just some pending correction and FEDs allowed the others to play the big dog around. What we see in the chart today is an inverted head and shoulder confirmation heading back to the previous top at 114.732. Breaking higher from there we are expecting the Fibonacci extension target at 117.66 which further extends to 119.4 Darvas Box method target.
This seemingly final target for now appears to be perfectly inline and very close to the target of ~120 on DXY as mentioned in my previous idea about DXY (related idea).
Note: This naturally implies that we should avoid long positions on metals for now.
So, best of luck, ensure proper risk management and happy trading :-)
We recently witnessed a sudden weakness in the strength of USD owing to some intervention on a global scale which pushed metals and other currencies up against USD. Turns out that it was just some pending correction and FEDs allowed the others to play the big dog around. What we see in the chart today is an inverted head and shoulder confirmation heading back to the previous top at 114.732. Breaking higher from there we are expecting the Fibonacci extension target at 117.66 which further extends to 119.4 Darvas Box method target.
This seemingly final target for now appears to be perfectly inline and very close to the target of ~120 on DXY as mentioned in my previous idea about DXY (related idea).
Note: This naturally implies that we should avoid long positions on metals for now.
So, best of luck, ensure proper risk management and happy trading :-)
