U.S. Dollar IndexUpdated DXY retrace (SHORT) Good but could be a poisoned chalice.
Instead of publishing individual charts for USD pairs, I think with the NFP coming out today the most significant part of the equation is the dollar index. First the dollar is in no uncertain terms in a mega bull trend, what everyone is trying to play is the expected retracement to the previous monthly low level and then back to the uptrend.
But FIRST the DXY has to break through last month's MONTHLY HIGH!! it has not, and it may bounce off that. So EURUSD, GBPUSD,NZUSD, GOLD, SILVER longs which for many including me are already in play should be watched carefully as they can turn abruptly with the DXY vigorously bouncing off the stated level. USDTRY, USDMXN,USDJPY etc shorts could turn ... same logic.
So basically short DXY but keep an eye out for an unexpected and utterly deadly bounce today, if it doesn't bounce off today with better than expected NFP, then a week long ride for DXY short would ensue.
But FIRST the DXY has to break through last month's MONTHLY HIGH!! it has not, and it may bounce off that. So EURUSD, GBPUSD,NZUSD, GOLD, SILVER longs which for many including me are already in play should be watched carefully as they can turn abruptly with the DXY vigorously bouncing off the stated level. USDTRY, USDMXN,USDJPY etc shorts could turn ... same logic.
So basically short DXY but keep an eye out for an unexpected and utterly deadly bounce today, if it doesn't bounce off today with better than expected NFP, then a week long ride for DXY short would ensue.
Note
USDCAD is certainly a sell now after NFP.. check image ibb.co/jv5667
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.