The US Dollar’s strength has again been noticeable in this past week’s currency market. The US Dollar vs the Yen and Franc Swiss have shown more strength than any other US Dollar currency pair. If we look at the US Dollar index in the chart above, we can see a doji weekly Japanese candlestick (in a weekly time frame) that implies indecisiveness in the market. You may recall that in last week’s vlog, I pointed out the importance of understanding how wide the trend will be before we can predict a turn. The Dollar currencies have closed this week with an indecision candlestick, which makes me think that we are probably getting closer to the top of this up trend to start a corrective move. It is too early to say this, as at present it looks like the Market Makers are forming a reversal pattern on a daily time frame. It will be interesting to see how the weekly candle closes this week, as we get closer to the Fed rate decision. Are the Big Boys preparing the market for a hike in the interest rate which in turn will see the Dollar weakening? We will have to wait and see. At present, it is too early to make concrete decisions on the next move, so I will continue to speculate like everyone else until we have more information.
The Euro has closed the week in the same way as the Dollar Index, that is with a doji candlestick, which means indecision in the EURUSD. This coming week, it will be difficult to make any trades in the EURUSD due to 3 main reasons. Firstly, because of the messages that the market has communicated to us (doji candlestick in a weekly time frame); secondly, because we have reached a support level (marked by the bottom horizontal yellow line) and thirdly due to the fundamental announcement that we expect this week. Rather than taking any position in the EURUSD and regret it later, I will want to trade the GBPUSD as it shows a better trade opportunity. You can hear me explain this in more detail on my YouTube channel ‘TakeMyTrades’.
Trade idea: Listen to the GBPUSD trade opportunity I talk about on my YouTube channel. Look for the last video update called: Weekly vlog of 27th November – 2nd December for USD Index, EURUSD, GBPUSD, AUDUSD and NZDUSD. Please comment below if you can’t find it.
Written by Elkana Roveglia – wwww.TakeMyTrades.com