Traders, Friday's price action certainly caught many off-guard, myself included. I thought after waiting several days for DXC to make the move higher that we would have got more our of our trades. However, now that the dust is settling, it appears that it was a correction, albeit a pretty strong one that shook us out of our dollar longs.
Below is a summary of the key levels that could suggest the correction is now complete.
Note: the Intra-Day FX Forecast highlights 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): Cautiously Bullish last night's update that suggested the Wave (iv) correction was nearing completion appears to have been correct. Prices have rebounded nicely thus far. Above 88.25 suggests that we are heading higher.
- EUR/USD: Cautiously Bearish expecting the 1.2503-1.2540 area to provide resistance before sending prices lower towards 1.2425
- GBP/USD: Cautiously Bearish looking for the 1.5662-1.5689 resistance zone to cap this rally and send prices lower towards 1.5592 and then 1.5480
- USD/CHF Cautiously Bullish Wave (iv) appears complete at the overnight lows. Looking for .9552 support/overnight low to hold and keep prices moving higher.
- USD/JPY Neutral trying to get a handle on this pair. It is either in a pretty complex Wave iv correction or it completed 5-waves to the upside and a decent size move lower is in order. The later scenario does not make sense though in the context of the overall market. Stay tuned for details as the day unfolds.
Dave
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