USDollar opened in between WPP and WM2. Dollar moved sideways during Asia though is currently at support with a bullish 123 pattern currently setting up on H1. Pay careful attention to Dxy for a sign of bullishness and USDollar strength. The goal is for you to use the Dxy to confirm areas of support or resistance for the USDollar when trading USDollar pairs. This will help you with your entries and also help you confirm USD strength or weakness.

We have a lot of data releases for the America this week – for all the risk events please click here

Dxy H4

We get new monthly pivot points tomorrow. Price opened between WPP and WM2 at the 61.8% fib of the swing low on 26 October and swing high on 28 October. This gives bulls a target of WM4/ WR2 for the week which coincides with the extension of the 61.8% fib. Should price fail to move up from this level of support I identify the next level of support at WS1 as highlighted in green in the above chart. Resistance is highlighted in red at WR1.

Dxy H1

Dollar has formed a 123 pattern on the H1 chart and price is currently in the fib zone so if USDollar is going to be strong for London then now is the time to go up. I have highlighted and labelled the bear fib zone from Friday's bearish move.

US 10Y H4

US 10Y opened between WPP and WM2 with the 21 clearly below the 55. Role reversal resistance is highlighted in red and the bear fib has been drawn from from the swing high on the 25 October and swing low on 28 October. Ideally I would like to buy dollar when Dxy is at support and US 10Y is at resistance.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.