I am a bull on the USD. Please take a look at my trade plan for opportunities to buy USD.
Price opened below MM3 and under a major resistance level (0.73500 mid psych level). It then consolidated for a few days before negative news data caused it to break out of range, pushing it down. At the moment, it is sitting on MPP and has broken the 21 but not yet the 55. It should also be noted that the 21 is still above the 55 but the 5 is now below the 8. Before price makes it way down and reaches MM1, which is bears’ monthly target. I’m expecting price to pullback at 38.2 fib level/0.72500 mid psych level and 21 EMA (resistance levels) before selling the pair. Levels of support identified at 55 EMA/ 0.71500 mid psych level, MM2/0.71000 psych level, 0.70500 mid psych level, MS1/0.70000 psych level, 0.69500 mid psych level and 0.69000 psych level. Stochastic is also pointing down.
Price was consolidating between WPP and WM3 before negative news data gave it the push that it needed to break out of consolidation and make its way down to meet its weekly target (WS2). We can also see the formation of a head and shoulder pattern, indicating a price reversal. 50% fib level/WS1/0.72500 mid psych level is where resistance is identified and where price is expected to pull back. MPP is just below WS2. Additionally, the 21 and 55 just crossed, indicating a change of trend and stochastic is oversold.
Price opened below DPP/WM2 and made its way down below DS2, which is bears’ daily target and support. WS2 and MPP are both below DS2. WS1, which is a level of resistance, corresponds with DM2/ 0.72500 mid psych level. Since price has already met its daily target, I will wait for a pull back then bearish price reversal patterns on lower time frame before shorting the pair.