Good morning to all and happy week ahead!! The Dollar has showed important reversal signs from last week and I expect to see it continue strengthen. My Daily Dollar index analysis as always can be found here. Last week I also posted an analysis on NZDUSD which is very close to breaking important channel support and confirming a major reversal. This will be confirmed on a break below 0.7050, until then there is upside potential to 0.7250-0.73.
Although I expected a pull back towards cloud support, it seems that is flagging before the next leg higher. I would be a buyer if it reached the cloud support.
Weak despite Oil weakness. As long as price is below 1.3540 bears are in control and could push lower. Daily chart is bearish as it looks like a flag pattern with price consolidating between 1.3350 and 1.3550 before the next leg down. Surely bearish if the consolidation is broken. Shorter-term we could see another try for 1.3550-1.36 before next move down.
I expect the post election lows to be re-tested or even broken before any upside reversal.
Bullish since 109.50 and out around 110.60. Price got rejected at the Trend line resistance. Breaking above the blue TL we could see 112.50 again.
#USDJPY I’m out. Not short
— Alexandros Yfantis (@alexanderYf) June 9, 2017
I prefer to be neutral USDJPY now.
Thank you for taking the time to catch up on my thinking.