Welcome to our newest feature; DecaPip. The concept is simple: our professional market technician, with an exceptional system, showcases his own daily Support and Resistance levels across a broad spectrum of FX currency pairs. The most effective way to use the levels are:
- If indicated levels hold, look for the price to reverse.
- If levels are broken, look for the price to continue past to new highs or lows.
For Wednesday’s DecaPip Daily I would like to take a closer look at the USD Index and what we can expect to see happen in near time trading as we approach the all important Non farm payrolls job report this Friday.
Currently the USD has been in a consolidation faze with many fake breakouts and minor breakouts happening only for them to reverse where they started.Traders need to look at the price charts and find specific areas of support and resistance. We can also then be aware and ideally placed what to expect should certain price points hold or reject price.
The USD chart below is fascinating.
We can now see price currently sitting at the top of it’s channel and waiting to push higher to test the red line above.Yesterday we saw a FED speaker come out and openly push for a September rate rise,this has put downside pressure on EUR/GBP/ Yen and the commodity currencies giving the USD a boost.
The chart below gives a slightly more complicated viewpoint to USD traders.
We can see the USD in a megaphone pattern and sitting close to the top.
Textbook theory suggest these type of patterns have been known previously to make huge moves from each furthest point in relatively quick space of time.So if the top can hold it could indicate a nice spot for USD sellers.
If we look closely at the Dollar Index these next few days it can surely help us with our currency trading decisions mapping out clearly support and resistance for possible trade set ups..
Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com
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