2023-10-16 • Updated
Let’s take a look at the prospective direction for the US Dollar and a few majors this week. Despite the general sentiment of most analysts being in favor of a continued bullish momentum on the dollar, I have reason to believe that this may not be the case - not yet, at least.
Are you familiar with the head-and-shoulder pattern? It is a classic reversal pattern, and is currently being presented on the daily timeframe of the US Dollar. At the moment, price seems to be reacting to the pressure from the supply zone at the head of the pattern, which serves as even further confirmation for the bearish sentiment.
Analyst’s Expectations:
Direction: Bearish
Target: 105.378
Invalidation: 106.836
Based on correlation analysis we know that a weaker Dollar is good for the Euro, and vice versa; since in this case we expect the US Dollar to go weaker, EURUSD should be bullish. From the technical analysis, we see another head-and-shoulder pattern with a bullish reaction from the demand zone.
Analyst’s Expectations:
Direction: Bullish
Target: 1.06448
Invalidation: 1.04590
Similar to the current pattern on EURUSD, we see the same inverted head-and-shoulder pattern here on the daily timeframe of GBPUSD as well. The demand zone will serve as a valid point of entry for a buy trade as I expect prices to climb higher.
Analyst’s Expectations:
Direction: Bullish
Target: 1.23106
Invalidation: 1.20662
The trading of CFDs comes at a risk. To succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
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Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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