Dollar weakness going into the Asian session
The U.S. Dollar has finally found its way below the support levels it had been testing over the past nine days. This move was swift but has found support now at the 86.20 area which is a minor psychological number. There is support to be found at the Wave, as prices have firmly pulled back into this area of support. What will be closely watch is whether prices successfully trade below 86.20 and then test the 86.00 level. This “00” level should not “go down easy”…so expect some support at 86.00.
I really wanted to set up a few charts as we go into the Asian session this evening as this will present the Asian open with a bearish U.S. Dollar scenario and should result in some movement through Tokyo, Hong Kong, Singapore and into the 2:00am EST London open.
The Swissy is pulling back with the U.S. Dollar into its own levels of the Wave and this too is support. The set up here is two-fold: play the bounce into the Wave at this 1.2565 level to the upside or wait to see if prices will take out the support at 1.2500 and play the downside.
Since we’re going into the Asian session it will be key to watch the 118.00 level which is currently support. The set ups will be similar to the Swissy set up as a bounce can be played to the upside or wait to see if the 117.50 area is broken to the downside.
Let’s round out this Thursday, pre-Asian session scan with the Canadian Dollar. The Canada is pulling back to Wave support and the support here will set up a bounce play to the upside and this will be valid (like the above mentioned set ups) as long as prices are support by the three lines of the Wave.
*All charts are done on eSignal Premium with the EZ2 Trade Software Collection. www.ez2tradesoftware.com
Raghee Horner is an trader with more than 15 years’ experience in the markets. Ms. Horner has taught her brand of technical analysis and charting strategies to students all over the world. She is also the author of the bestselling “Forex Trading for Maximum Profit” and “Thirty Days of Forex Trading”. Emphasizing charting and price action and continues to teach the tools and strategies that encourage self-directed traders to pursue the study of chart analysis and market psychology. She is a much sought after public speaker who has conducted seminars in the US, Canada, the Caribbean, and Asia. For more information on Raghee’s analysis and trading email firstname.lastname@example.org or visit www.raghee.com.