APPROACHING 4HR SUPPORT BE CAUTIOUS
DXY has shown a lot of bearish pressure over the past few weeks. The higher time frames have given us this information that long term the dollar will lose value. However short term the dollar continues to entertain buyers from time to time with the retracements on the 1hr time frame.
However 1hr/4hr/daily are all bearish so placing a buy were the market is currently would be suicide. At the same a 4hr support is being approached which can give us two possibilities. The price could potentially hold or break out. This now requires us to be patient and wait for the market maker to show us his hand. If you have been anticipating a short term sell on the dollar that is fine, problem is will the support be breached or rejected.
In conclusion, if any day trading opportunities are presented on Sunday/Monday i believe it will be safe to sell the dollar but exit within the same day.
However 1hr/4hr/daily are all bearish so placing a buy were the market is currently would be suicide. At the same a 4hr support is being approached which can give us two possibilities. The price could potentially hold or break out. This now requires us to be patient and wait for the market maker to show us his hand. If you have been anticipating a short term sell on the dollar that is fine, problem is will the support be breached or rejected.
In conclusion, if any day trading opportunities are presented on Sunday/Monday i believe it will be safe to sell the dollar but exit within the same day.
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