Sell order at 1.2054 tagged overnight 10 pip SL now locked in at BE. We've formed a little bear flag at 50% of the initial down move. The entry was based on 50% retrace of the most recent swing high/low and resistance area 1.2050/60 as well as the picture on dxy, also we need to have a pull back after a big up thrust like that i reckon. I wonder if we'll initially see a range develop between the 50%/38.2% (1.2064-1.1975) levels of the recent monthly impulse leg up.
10yr Treasury yields making a bee line for 1.23% meaning the market is expecting inflation which will lead to a more hawkish fed policy. The stimulus is just transfer payments and it's main effect is likely to be inflationary, increasing demand by transferring money to people who are more likely to spend. I believe we have CPI inflation data from the US this week, this will give us some direction
Next area to take out is 1.2030 (0.382 fib) then look for a reaction at the pivot 1.20164. IF we get there, we could just be up to test 1.2050/60 again. But the flag suggests continuation down towards the pivot
Took 15 pips then re-short at 1.2046, stop to BE
Edit- took 20 pips on the second short
10yr Treasury yields making a bee line for 1.23% meaning the market is expecting inflation which will lead to a more hawkish fed policy. The stimulus is just transfer payments and it's main effect is likely to be inflationary, increasing demand by transferring money to people who are more likely to spend. I believe we have CPI inflation data from the US this week, this will give us some direction
Next area to take out is 1.2030 (0.382 fib) then look for a reaction at the pivot 1.20164. IF we get there, we could just be up to test 1.2050/60 again. But the flag suggests continuation down towards the pivot
Took 15 pips then re-short at 1.2046, stop to BE
Edit- took 20 pips on the second short