In this webinar, we looked at setups in the FX market using the US Dollar as a medium. We employed price action in the effort of discerning setups in trends across USD, specifically focusing on EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD and NZD/USD. Of particular interest are the setups in both DXY (the US Dollar) and EUR/USD; each of which have a valid case to be made on either side. We also looked at US equity indices after an aggressively bullish post-NFP scenario has developed. This keeps the prospect of ‘risk on’ across global markets, and this can be followed in FX with weakness in the Japanese Yen.
US DOLLAR’S Q3 PULLBACK FINDS STRENGTH – BUT CAN IT LAST
We asked this same question earlier this morning and the answer thus far has been ‘no,’ as the US Dollar has continued to slide after yesterday’s bullish rip. As we looked at earlier, that bullish bounce equated to an approximate 38.2% Fibonacci retracement of the prior week’s sell-off; and resistance came-in around that level to push USD right back down to the key support zone that we’ve been following that runs from 94.20-94.30. The bearish case for DXY would be looking intermediate-term from the four-hour chart, plotting this morning’s resistance infection at the 38.2% retracement for a re-test of the lows at 93.71. The shorter-term case could be bullish in nature, looking for higher-low support to hold above yesterday’s swing-lows of 94.08 or 94.02.
US DOLLAR FOUR-HOUR PRICE CHART: CAN CUT BOTH WAYS, A CASE ON EITHER SIDE