Trade view /
08 August 2016 at 7:42 GMT
USD Index – We called a bullish bias in the USD on Friday recommending buying close to the right shoulder support at 95.50. We made a 95.49 low.It's a critical level now for the index as we are against trendline resistance at 96.22. A break here and we look for a higher move towards 96.60 (61.8% Fibonacci) and 96.84 (AB=CD target). Looking to follow the trend this morning.
USD Index - Intraday
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I have taken a AUDUSD short and here is why:
Monthly – Still bearish with the whole move from September 2015 considered a fourth wave correction in a bearish Elliott Wave formation. A clear break of the expanding wedge and the target area becomes 0.5000 over the next few years.
Weekly – Doesn’t give away too much. In a corrective channel formation with a Doji style daily candle posted close to the 61.8% pullback level of 0.7570
Four hour - Highlights an Ending wedge formation. The target area for this pattern is 0.7420. However, we could see some stalling and profit taking at relevant Fibonacci levels today (161.8% at 0.7553 and 261.8% at 0.7486) as they line up with the wedge base and a previous swing low.
I am short one unit at 0.7612 and would like to see an hourly close at 1000 GMT below 0.7615 or we could see a higher correction to 0.7638 where I will sell another unit.
Management and risk description
short 0.7612 and will sell again at 0.7638
0.7490 and 0.7420
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more