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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Editors’ Picks
AUD/USD remains firm above 0.6600 ahead of RBA
AUD/USD maintains its bullish bias well and sound on Monday, extending the multi-session recovery past the 0.6600 barrier ahead of the key interest rate decision by the RBA.
EUR/USD keeps the constructive tone near 1.0800
EUR/USD started the week in a positive note amidst the Dollar’s inconclusive price action, altogether motivating the pair to attempt a move to the proximity of the 1.0800 region, where the 200-day SMA also converges.
Gold holds on to modest gains around $2,320
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
Bitcoin price holds above $63K as MicroStrategy tops BTC ownership list
Bitcoin (BTC) price recorded a rather bold two days this past weekend in a surge that saw millions in positions liquidated. However, the week is off to a calm start with altcoins sucking liquidity from the BTC market.
Stagflation warning: Service economy contracts as prices rise
In another stagflation warning sign, the U.S. service sector contracted in April even as service prices rose. The Institute for Supply Management's non-manufacturing PMI dropped to 49.4 in April, dipping from 51.4 in March.