Survey Says....
Technical set-ups are not enough to make good trades - a robust forex trading signal requires knowing which forex pairs are best suited for large moves.
Using the Forex Strength Meter below - we can get a very clear idea which pairs are most likely to outperform moving forward.
Using yesterday's low (Wave ii?) in the Dollar Index (DXC) as the reference point, it looks like USD/CHF (long) and EUR/USD (short) are the pairs best suited to trading using DXC as the benchmark.
Not So Fast - That Is Only Part of The Story
Now we need to understand how the technical set-up is evolving and the key technical levels that are key.
Traders, heading into the weekend it 'feels' like the dollar bulls will make a run towards the finish line. Thus, traders with both longer-term and short-term term preferences should find today's action suited to making trades.
Note: the forecasts highlight price direction and likely price targets/stops designed for traders looking at trading opportunities over the next several hours. These are not official trade recommendations, merely guidelines and forecasts
North American Short-Term Outlook:
- Dollar Index (DXC): Bullish from yesterday: assuming that prices remain above 84.14 the next stop is towards 85.00 Well prices did remain above that key support level and assuming 84.22-83.94 hold the next stop(s) are seen at 84.90 & 85.48 for the near-term
- EUR/USD: Bearish from yesterday: assuming prices remain below 1.2941 the next leg is lower towards 1.2808 Well, they did, next stop 1.2828
- USD/CHF: Bullish yesterday's pull-back was a bit deeper than I was expecting and while I needed to make a minor adjustment to the wave count, the bullish forecast remains intact. Near-term targets seen at .9425 & .9500
- USD/SGD: Bullish near-term target seen at 1.2698-1.2714
Dave
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