Hello Traders,
After Friday’s NFP report, the markets are taking the start of the week to consolidate. The questions are: 1) Is it time for the USD Bull run to take a breather and allow for a bit of a retracement? 2) Or, establish more of a channeling range before a longer term resumption of the USDX uptrend? 3) The 3rd possibility is a 5 wave retracement back to around 1.3750-66 on the EurUsd. At the time of this writing, the EurUsd is pounding against the 1.3700 level. An hourly close above could enbolden the bulls to make the next push to complete a wave 5 to near the abovemention levels were the down trend resumption could start. We’ll start taking small cost average positions there and if a reversal starts and confirms, will look to add to it.
Again, it is the opinion of many older experience futures traders that the US Dollar Index will continue higher on its Bull run. And since we’re due for a retracement, waiting for a better price to short this pair makes sense. As long as this retracement theme hold true, then most of the other majors should temporarily strengthen against the USD as well except for the UsdJpy which tends to be erratically unpredictable at times.
Great trading to you.
