Market was pretty busy this week calculating the trendline of the dollar vs. majors, and they captured their confirmation along with fundamentals which did not prove right to the figures.
USDCAD, USDJPY, USDCHF broke their long term weekly upper trendline, but the REAL DOLLAR WEEKLY TRENDLINE is not broken yet.
Will the market heads for a FALSE BREAK trap? It did already. On my “NonySqueak News” I posted the followings~ [11OCT] USD Bears turned onto Sheep (passive & fearful followers of trends). Volatility returning to the fx-scene? If so, euro gains momentum to the downside -11600, USDJPY screens 12700 & USDCAD 12400 before steaming is off.
Suggesting as analysis: allow the market few weeks of chopping trades.
Ichi resistance reads 8801 & conjuncts with the downtrend line; Momentum above zero suggests heading towards the resistance line in the days ahead. However, next week data are not that supportive to the dollar. As such, I expect 8800…8450 to keep the range narrowing further.
To end, European still interested in longs but below 12450 where summer stops are to be triggered.
ForexSurvivor next move would be through USDCAD, expecting allocation 400 pips between bull and bear signals, in this month. To find out how, you may pass www.forexsurvivor.com a visit.
Have a nice trading (Next) week
This post first appeared on Forex Survivor Articles - The Neglected Essentials, please read the originial post: here
