We saw a weak Dollar during the London session with price trying to find support at DM1 – perhaps the market is waiting on manufacturing news out later today. Yields of the US 10Y are down – perhaps investors are moving to safety ahead of the FOMC meeting tomorrow and the election next week. Should we see t-note prices continue to move up this will bring the yield down and result in further USDollar weakness. If you are looking to buy USDollar wait for a reversal pattern on H1 as the market is currently bearish. Today’s news releases are manufacturing PMI, ISM manufacturing employment and ISM manufacturing PMI. For today’s news releases please go here Forex.Today News Calendar

DXY H4

The green support zone coincides with DM1. With price having come off WM3 at the start of the week the bear target is WM1 which is the next support level should price break below the WS1.

DXY H1

Price attempted to find support at the start of London though Dollar Bulls were moved aside and Bears pushed price down to the daily Bear target where price has attempted to become bullish though has failed to make a higher high.

US 10Y

USDollar opened at MM3 and US 10Y opened at MM2 with the new monthly pivot points. Price came down off the 21 yesterday though failed to make a lower low - in fact we have come off WM2 which is the 61.8% fib of the swing low on 28 Oct '16 and swing high on 31 Oct '16. The 61.8% fib gives us a target that places us in the bearish fib zone from the swing high 25 Oct '16 and swing low 28 Oct '16. Should we see t-note prices continue to move up this will bring the yield down and result in further USDollar weakness.

Leave a Reply