Back in July 2014, price broke out of a falling wedge pattern, found resistance at the 1.000 level and following the unpegging of the Swiss Franc, retested the backside of the wedge this January. Since this event market sentiment on the dollar has been incredibly bullish, pushing price through the parity resistance within the last week.
It has since been failing to break back past this new found resistance, and on the weekly chart a Golden Cross looks set to take place, giving further catalyst for bullish continuation.
If sentiment for the dollar continues as it is, we could expect a nice long opportunity at this point towards the 0.382 retracement level, which also happens to lay just below the 1.15 resistance level. A stop loss just below parity here would give you an excellent 10:1 Reward:Risk ratio!
For those of you feeling particularly ambitious, the 0.618 retracement level happens to lay on the 1.4000 Monthly support. Good luck!
It has since been failing to break back past this new found resistance, and on the weekly chart a Golden Cross looks set to take place, giving further catalyst for bullish continuation.
If sentiment for the dollar continues as it is, we could expect a nice long opportunity at this point towards the 0.382 retracement level, which also happens to lay just below the 1.15 resistance level. A stop loss just below parity here would give you an excellent 10:1 Reward:Risk ratio!
For those of you feeling particularly ambitious, the 0.618 retracement level happens to lay on the 1.4000 Monthly support. Good luck!