Dollar has not yet been able to catch a cold let alone a bid. We continue to see Dollars being hit early this week but still feel that we will see at least one final “dead cat” bounce in the Dollar. So we are buying dollars this week. Volatility remains even higher then “usual” and we are therefore keeping position size much lower than we otherwise would. Look for sizable moves to come these next few weeks as most major pair are at or near critical levels.
EUR/USD:
We did test both sides of the range but then ripped through the upper end towards the middle of the week. This week we should see this pair spike higher but find resistance at or before the 1.36 level. That being said we have already sold short at the 1.34 level.
GBP/USD:
This pair continues to hang around the 1.50 level. We expect a few spikes above the recent highs but overall we see this pair breaking back down into the mid 1.40’s later this month. So with that in mind we are sellers of major rallies.
USD/CHF:
This pair should find support near the 1.12 handle and those that took shorts last week should be covering by now. We are looking a buys below 1.13 this week targeting a move back to at least 1.15.
USD/JPY:
This pair is also swinging back and forth within the range I outlined last week. We are looking for major dips back to the mid 90’s this week or next as the next long entry signal. For now we are short from 99.00.
AUD/USD:
This pair could be a leading indicator for the other majors as it is the first to truly breakout against the Dollar. We expect this first breakout to be a “headfake” and are selling into rallies early this week. We are targeting a move back to the low70’s before turning back up.
USD/CAD:
This pair has fallen below support but not below the spikes he have seen in the past. So we are still looking at longs from the 1.1750 handle and looking for a move back into the low 1.20’s.
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