EURUSD & DXY DIVERGENCE???

Good morning traders,

Today morning we come to our desk, we noticed EURUSD took the NFT sweep low from 2 weeks ago while DXY is reluctant to take the NFP sweep high. This tells us that there was still some liquidity left for EURUSD to take on the downside before price can be bullish again.

We see a good opportunity to buy EURUSD at the current price with the stop at 1.01200 or abit lower than the previous low to be on the safe side from another liquidity sweep if it does happen.

There are 2 confluences in favour of this trade.
- SMT Divergence between EURUSD and DXY
- RSI Divergence in both charts

DXY generated high during NFP which perhaps trapped many retail traders. We believe, it is unlikely for DXY to hit that high and release the trapped traders. However, it is possible too.

We will keep you all updated as price moves

Comment:

Note that EURUSD on daily time frame is bearish so if the buy trade hits our stop, there is no surprise.

This will turn our bias to bearish then🔻

Trade active:

Moving SL to entry now

Comment:

Running at 1:4 RR

Risk Free. Booking Partials now