While not being part of the rally in the Dollar Index (DXC) on Friday was disappointing, we all know that no move goes in a linear fashion. There are zigs and zags along the way.
Luckily corrections are part of the normal market process and as of last night we certainly are seeing weakness in the US dollar and that should give us an opportunity to re-establish long dollar positions.
Note: the Intra-Day Forex Trading Signals 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): Neutral if Friday's high marked a completion of Wave 3 then we may well see a correction that will take us towards 85.44EUR/USD: Neutral a mirror image of DXC. Assuming Friday's low was the completion of Wave 3, prices will begin tracking higher (correction) towards 1.2700 & 1.2782
USD/CHF: Neutral correction off recent highs is underway. For short-term oriented traders who are comfortable trading within a correction, the next stop is .9597
USD/NOK: Neutral correction off recent highs is underway, next stop seen towards 6.4294-6.4026
USD/JPY: Neutral to Modestly Bullish I like the general price action off the Oct 2nd lows but prices will need to remain above 108.99 if this pull-back off the highs is to remain just that - a pullback. If prices hold, next stop 110.31
EUR/SEK: Bearish the sideways consolidation we have seen from the last September lows appears to have abated. Looking for prices to maintain a firm tone lower
EUR/GBP: Neutral I doubt that the current bounce higher is the end of the sustained move lower. I will be watching closely for a chance to get short. The .7890 level is likely to provide some resistance.
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