Trade view /
05 August 2016 at 7:46 GMT
We have nonfarm payroll today
. We are struggling to get a real feel for the US dollar on the run up into these much anticipated reports.
USD Index – The monthly chart suggest a continued bull run up to the Fibonacci confluence area at 102.00 (61.8% pullback and a 161.8% extension)
Daily - The fact that we have strongly rejected the 61.8% pullback level and look to be in a corrective channel would suggest that there is scope for a deeper correction lower in the USD before bulls return (new yearly lows).
Six hour – This timeframe would suggest a mild bullish intraday and temporary bias. It has completed a bearish five-wave pattern and is now moving higher in a corrective sequence. We see a potential bullish reverse Head and Shoulder (Green) inside what could be a large bearish Head-and-Shoulders pattern (blue).
Trying to buy USD’s close to the right shoulder at 95.50 would offer a good risk against reward trade today with a target area being 96.60 to 96.84 (61.8% pullback and an AB=CD target)
Management and risk description
buying USD's close to 95.50 (this morning).
— Edited by Martin O'Rourke
Non-independent investment research disclaimer applies. Read more