DXY has today hit, and been perfectly rejected at, the 1.272 Fibonacci extension of the prior swing on the daily chart. Most moves terminate at extensions of prior swings. Will price carry on upwards to the next technical level, or is it exhausted? No idea, but this technical level should not be ignored ...
Far from exhausted imo Froddy.
That’s interesting - I’m not up to speed on the latest news, but will have a look …
Anyone listening?
www.bloomberg.com
DXY (dollar index) - quite a few fair value gaps (inefficiencies) below to be filled on the daily chart (the green arrows point to the FVGs). Big Money doesn’t like leaving unfilled orders, and all that juicy profit potential. The markets are all about liquidity - little else - and these gaps can act like magnets …Anyone listening?
Pound Marks ‘Black Wednesday’ With Drop to Lowest Since 1985
Traders and others remember the turbulence of Sept. 16, 1992 — as sterling hits multi-decade lows again.
GBP drops thru 1.14!!!!
$ or gold fellas.
View attachment 105882
wakey wakey.
Hi Wattie I think the probabilities favour a short-term DXY retracement/fall towards those FVGs, but I can’t say when that will happen - it could take days, or it could take weeks. These are extraordinary times and, frankly, anything could happen! There’s evidence elsewhere to support a correction (see earlier posts) including bearish RSI divergence, price being too far from the mean (price always reverts to the mean), and price rejection at the 1.272 Fib extension of the prior swing. A classic scenario would be a push higher, and then a failure at the highs before the retracement begins (a “double top”), potentially with another liquidity grab (also knows as a “fake out”) to trap the bulls. A weakening DXY would obviously mean a strengthening GBP/USD.
Thanks for the input.
Hence Gold or $.What the weak pound and Euro is doing is making investments in the US (from European Companies) much more expensive. - Ask me how I know.
It's in even bigger trouble now! Nice trade, Wattie - congrats!
apple.news
I think that the University of Chicago is full of cranks. Because there is absolutely no economist I am aware of who could have reasonably predicted where we are...so no one can accurately gonna predict where we are heading. Markets aren't rational. The rightists on every continent want only to feed their cronies...despite the fact that "trickle down" doesn't, and wealth is becoming more and more concentrated...and I have friends who make $35,000/year who think they should be putting hard USD into crypto. We are all on a long, slow train ride to ****. About the only thing that has turned something like this around is a major war.
Any economist worth his salt should have predicted this happening as it was blatantly obvious.I think that the University of Chicago is full of cranks. Because there is absolutely no economist I am aware of who could have reasonably predicted where we are...so no one can accurately gonna predict where we are heading. Markets aren't rational. The rightists on every continent want only to feed their cronies...despite the fact that "trickle down" doesn't, and wealth is becoming more and more concentrated...and I have friends who make $35,000/year who think they should be putting hard USD into crypto. We are all on a long, slow train ride to ****. About the only thing that has turned something like this around is a major war.
Hey! Wait a minute...
DXY ($US) update - price is at exhaustion risk, having reached the 1.618 Fibonacci extension and the top of the broadening formation (the upper trendline) on the monthly chart. Lots of juicy liquidity below, including fair value gaps. Will price reverse soon(ish) or push on through? Who knows - these are extraordinary times …
Checked my tea leaves This am Froddy and there was a clear message about the pounds status quo
