Today we will be looking at the TVC:DXY , which seems to be in a nice structured uptrend. As we all know, the Brexit vote did end up surprising the market, which the market does NOT like. Thus, since the result to leave EU was not priced into the charts, this lead to strong irregular impulsive moves. As for the US Dollar , the vote to leave the EU ended up favouring the Dollar, causing big impulsive move to the upside after the Dollar re-tested it's weekly low's around 93.00 even handle.
After huge impulsive moves, we do expect some type of retracements (but we don't get them all the time). For the US Dollar this retracement has appeared in the form of a Pattern, which is one of the trend continuation patterns. Now that we have 2 consecutive HH's and 1 HL formed, we do consider the US Dollar to be in up-trend at the moment. Of course on the higher time frame, such as the Daily or Weekly, we are still just in a big consolidation range since 2015 highs.
Fortunately our measured target for the lines up perfectly with the range bound situation on the higher time frames. Our target is just 50 points below the 100 even handle, which is the top of the range bound US Dollar . After the breakout to the upside, stops would go below the bottom of the . I will post a chart after we get a breakout, just to give you guys a clear picture.
NOTE: The breakout to the upside in the US Dollar means that we will be able to look for selling opportunities in Forex pairs that have USD as the quote currency.
That’s all I would like to cover for this trade setup. If you guys have any questions or comments about this trade, feel free to write in the comment section located under this description section. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. All The Best :)
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