Trade view /
07 March 2018 at 7:50 GMT
USD index: We are close to a critical point. There is scope for further selling towards 89.20-88.80 zone to possibly form a Right Shoulder of a bullish reverse head-and-shoulders pattern. The intraday bias is to sell into rallies.
Source: Saxo Bank
Looking away from USD majors to EURJPY today as buying dips offers ample risk/reward in a counter-trend move.
Monthly: In a huge triangle formation. Stalled at a previous congestion zone with levels above the Ichimoku cloud finding sellers. With the presence of a bearish Outside Month, the long-term outlook is negative. Last month’s Marabuzo (mid-point from open and close) is located at 132.76.
Daily: Posted a Demark correction nine count with level under our bespoke support zone (129.58-129.41) finding buyers. Bullish Outside Day posted at the low. This often indicates the change of a trend. The rally has stalled close to a previous congestion zone. What was support, now becomes resistance. There is ample scope for a further correction lower to buy into.
Intraday (30 minutes): Expect the move lower to be mixed and volatile. The 78.6% pullback level of 129.82 is close to bespoke support at 129.60. We look to buy in this zone; although we expect limited upside (after the strong initial selloff), buying dips offers ample risk/reward.
buying at 129.65.
— Edited by Michael McKenna
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