Day trade
Trade view / 05 August 2016 at 7:46 GMT

USD Index offering mild bullish bias

Analyst / PIA First
United Kingdom
Instrument: DXYN:xnas
Price target:
Market price:

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)

 Source: Saxo Bank

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).  

Source: Saxo Bank

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).
Source: Saxo Bank

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


Entry: buying USD's close to 95.50 (this morning).

Stop: 95.30.

Target: 96.60-96.84.

Time horizon: today only. 

— Edited by Martin O'Rourke

Non-independent investment research disclaimer applies. Read more
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
took a EURUSD sell on the back of the bullish USD call. Out now. Was nearly pip perfect for USD support


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