DXY: Early Black Friday Deal?
Updated
Hello traders. Happy new trading week.
The Asian session kicked off the new week with quite a dramatic drop in the Dollar Index.
On the daily and 4H charts it has reached support. The weekly value i comfortably above all MA's.
I exited my EUR/USD short at the 4H close which was right at the 50% retracement of the 0.95361-1.12758.
I suspected that the dramatic drop was due to not only economic concerns but more about the Russian/Ukraine war escalation after President Biden approved the use of USA made long range missiles to be used by Ukraine. This notion was reinforced by the appreciation of the JPY, the classic safe haven currency.
There are a number of 1st tier USD economic releases due this week culminating with Eurozone CPI on Friday and RBNZ rate decision midweek. Keep an eye on those.
Far be it from me to look a gift horse in the mouth. A lot of heavy lifting was done by the big players last week by running stops on DXY to a two year high of 108.07. The illiquid conditions at the Asian session opening dropped it back to daily support.
I have shorted EUR/USD at the 1.0500 level and shorted NZD/USD at 0.5868 and keeping an eye on the next daily closing level at 0.5876.
Finally, Happy Thanksgiving to USA traders and best wishes to everyone else. TIP: The Asian session on Thanksgiving day can sometimes produce good illiquid trading opportunities. Just saying. Not investment advice.
The Asian session kicked off the new week with quite a dramatic drop in the Dollar Index.
On the daily and 4H charts it has reached support. The weekly value i comfortably above all MA's.
I exited my EUR/USD short at the 4H close which was right at the 50% retracement of the 0.95361-1.12758.
I suspected that the dramatic drop was due to not only economic concerns but more about the Russian/Ukraine war escalation after President Biden approved the use of USA made long range missiles to be used by Ukraine. This notion was reinforced by the appreciation of the JPY, the classic safe haven currency.
There are a number of 1st tier USD economic releases due this week culminating with Eurozone CPI on Friday and RBNZ rate decision midweek. Keep an eye on those.
Far be it from me to look a gift horse in the mouth. A lot of heavy lifting was done by the big players last week by running stops on DXY to a two year high of 108.07. The illiquid conditions at the Asian session opening dropped it back to daily support.
I have shorted EUR/USD at the 1.0500 level and shorted NZD/USD at 0.5868 and keeping an eye on the next daily closing level at 0.5876.
Finally, Happy Thanksgiving to USA traders and best wishes to everyone else. TIP: The Asian session on Thanksgiving day can sometimes produce good illiquid trading opportunities. Just saying. Not investment advice.
Trade active
I don't trade Gold but it is one of the four asset classes that I constantly watch. DXY, EUR/USD, US10Y and Bitcoin. The correlation is always significant. JPY is more about risk conditions in my opinion.
Trade closed: target reached
Please refer to my next idea for trade status.Note
I also exited my NZD/USD short at 0.5815. 
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