Disliked{quote} Yes man. I agree too. As I stated on Mr Burger's post. 1.382 area for another buy. It should get to 1.40 to complete the double bottom W. Then come down to below 1.38 for the right shoulder to complete towards 1.41 areas. That 1.375 area support is very solid if one does a trendline on D1. With that, it is gonna be a triple top formation which may push down harder this time. My thought though. PS: was very busy on Friday and removed my buy limit order on 1.3768. Very painful when i realized it did 100 pips. Well, we live to fight another...Ignored
Yeah so the big clue for me is the wick rejection off of this weekly level on the dxy (I use it as a bellwether/corroboration for where the other pairs are going). I tend to see the market has horizontal levels/zones of buying and selling above all else. I can't remember where I read this but under S&D theory any zone which creates a gap is particularly strong and this is exactly what we're reacting off of now. It would take some major fundamental trigger to push above this zone on DXY IMO as this is where the big institutions have their sell orders. And we know the big buyers are down at mid 1.37 on cable. This is why I scalp intraday, I have an economics background but I'm not an economic forecaster. It's good to be aware of that stuff I think but I can't possibly forecast that far ahead or react in time.
Like I say i'm not married to this view, anything can happen, just good to be aware of where the buyers and sellers reside in whatever market you're involved in. Could we get some economic news which smashes through my supply level on dxy creating new demand levels? Of course that can happen, so I'll be out of the market for that then adjust accordingly. In that case we can enter a trending period on the dollar index then things get really interesting, the next major zone is at 96/97 and we can be taken down to 1.35 on cable and beyond- who knows. We're really in uncharted territory in economic terms with what the Fed is doing.
Last point, some people will be viewing the daily chart as a double top but we can just as easily be going in for a period of sideways movement, in which case we've maybe reached the bottom of that range and can be headed back to the 1.4s, 1.4082-1.4132 would be good longer range target (next daily supply area) in that case. Even if it is a large M pattern/double top some retracement of the last leg (0.5-0.618) is typical before going back down
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