USDCHF Shooting Star at Resistance LevelAfter a strong bullish run through to 0.99800, USDCHF is now testing a key resistance level formed over the past week. Price action shows that the resistance is being rejected and thus I have the bias that there may be some downside momentum due to arrive in USDCHF towards 0.98940.
I will be looking to short this pair if price forms a shooting star that is broken to the downside.
Usdshort
USDCHF Likely To Test 0.97500 Level After Trendline Violation!Hello Viewers, this is an instant trade signal! Therefore, please have a look at the main chart for the following vital trade details:
• ENTRY POINT
• STOP LOSS
• TAKE PROFIT
• RISK TO REWARD
The setup may look simple but I can assure you it is NOT. There are various in depth technical and fundamental analysis incorporated behind the execution. I would very much love to explain these two aspects here but doing that would consume ample amount of time which could affect the appropriate entry point behind this trade! So, to keep it simple the main chart just displays the simplified technical view of this trade.
My way of performing technical analysis basically starts by breaking down the monthly Timeframe down until the One Hour charts. The following are the aspects I focus most on when performing technical analysis:
• Draw Support & Resistance through key common psychological levels on M & W Charts. This helps me to see where the price might stall or breakout.
• Draw Trendlines to determine the dynamic support and resistance levels present on the charts. This helps me to determine where the price might stall and most importantly help determine the path of least resistance behind the active trade.
• I also tend to use EMA 50 on all the Timeframes. This EMA 50 is proficiently proven to act as dynamic support and resistance and is vital behind all my analysis.
• Lastly, I tend to use classic pivot levels to determine my entry, stop loss and take profit levels. The combination of this and all of the above helps me determine the precise and likely trade targets behind the setup.
Another aspect of my way of analysis is reading a lot of news to determine the fundamental aspects affecting any trade. After the technical analysis is performed, I tend to match if the fundamental aspect really supports my technical analysis.
Therefore, as you could see, putting all my thoughts here would surely take up a lot of time which could make the price drift away from the entry price thus affecting the Risk to reward ratio. I understand it is vital for many of you to know the details behind this trade setup, and so if you are interested you could send me message and I will try to share most of what I can!
The Above words are just template I use in all my trades. Shall there be any updates I will provide them here. Thank you
USD showing signs of weaknessThanks for viewing,
Well the theory goes that the US is weak but the rest of the world is weaker, so the US market will continue on up which will support the currency. Maybe so, I am just looking at the chart.
What I do see, is an overvalued equity market and extremely low return from treasuries, which could result in global buyers looking for value elsewhere. The country where I am now pays 8.5%pa on 2 year government bonds and the inflation rate is 3.32% presently - which is far and away preferable to netting less than inflation in US treasuries. Unfortunately, they have been burned before denominating government debt is USD and now limit foreign buyers and only accept local currency. Which is just a small local example of the de-dollarfication trend. If you want decent returns, it seems you will need to sell your USD and invest in emerging economies with younger populations and growing middle classes and / or buy gold and silver.
If my Elliot Wave count is correct, we have seen a weak (wave (B)) correction upwards, that has retraced 65% of the previous steep drop. The multi-year rise has been slow and steady, but far from convincing. There are now clear signs of bearish divergence on the weekly time-frame. It was this divergence that got my attention a few months ago. This isn't a trade, it is just something worth watching. If the decline picks up, 83 would be a reasonable expectation. Of course, the DXY basket is 57% Euros and Europe is tipping into a recession, but this is how it is looking like playing out from the chart. Let's see how it unfolds.
Protect those funds everyone
USDMXN Bounce-PlayTwo possible scenarios:
1. USDMXN will create the next shooting star soon after reaching 20-- this new high and possible psychological resistance, and expecting it to drop back near 19.5 (or lower, possibly at 19 instead which is the 61.8 fib) by next month, or
2. USDMXN will continue rising near 2018 high esp if DXY tries to reach 100 before bouncing down as expected
Either way, this pair is pretty much overbought and due for a strong pullback, especially if we look at its weekly price action, recent bullish candles aren't as big as those back between April-June 2018 and October-November 2018.
Weekly:
Confidence: B (possible for this pair to reach new highs esp if market gets more risk-off overall while at the same time continue pushing DXY to climb to 100 faster-- after already pricing in the 2nd rate cut by Fed this coming September)
Weak Dollar play on different pairsDate Pair Direction Trade Trend Level Signal Entry
2019-08-04 GBPUSD Long Counter Trend Down Horizontal Support Indicision break
2019-08-04 EURUSD Long Counter Trend Down Horizontal Support Pin Bar break
2019-08-04 AUDUSD Long Counter Trend Down Horizontal Support Pin Bar retrace
2019-08-04 USDCAD Short Counter Trend Up Horizontal Resistance Pin Bar retrace
Mind position sizing.
US DOLLAR INDEX DXY - LET THE REVERSAL BEGINDollar Index - Weekly chart - After patiently waiting ( for monthss!!) for dollar index to rally into the weekly supply zone for a reversal, we have now reached this point and can anticipate a share reversal/decline for dollar in the coming weeks to months.
The Great DeflationDeductive Thoughts: Global interest rates continue their decline towards zero. Soon, most major economies will be under the pressure of deflation. On the one hand, negative interest rates have shown to be not viable to boost inflation, risking a debt crisis of the private sector piling up "free" loans. On the other hand, quantitative easing also shown to be not viable, risking a debt crisis of the public sector piling up private debt.
Inductive Thoughts: Global economic policies will need to change this coming year, or a reason to inflate must be put forth. Major economies cannot sustain previous growth rates as they begin to fill in to all the available room. Two possible solutions: War; or Mars. Wars are infamous for their spur of inflationary periods. However, a global effort to colonize Mars would prove just as potent to spur growth.
The Trade: Sell USD and buy GOLD into the devaluation of the dollar. Sell stocks, sell bonds (interest rates are not returning to previous levels, so bonds no longer safe haven).