What the Dollar Index is telling me about these 4 pairs
Dave Floyd is a professional FX and stock trader based in Bend, OR and the
President of Aspen Trading Group. Dave’s approach to FX combines technical
and fundamental analysis that results in trades that fall into the swing
trading time frame of several hours to several days. For a free trial to
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As we noted last night, DXC (Dollar Index) was poised to trade
back towards the 90.15 level, but unlikely to make much of the move. It has
since traded lower back towards 90.00. Prices are now poised to trade below this
level as the intra-day time frames we monitor suggest that bearish momentum has
re-established itself but not before a re-test of the 90.15 level. Look for
89.85 to 89.65 as the next target areas.
The implications for dollar-based pairs would be for a stronger EUR, GBP, JPY
and CHF.
Trade Idea:
On
Monday we noted the bearish divergences on GBP/NOK — while this is viewed as
a longer-term trade, prices have begun to trade lower. Watch for support levels
at 11.75 & 11.70.
Dave