Published On: Fri, Mar 10th, 2017

Still holding a bearish outlook on the USD

InstaForex

Day trade

/

Buy

Trade view / 10 minutes ago

Analyst / PIA First

United Kingdom

Instrument:GBPUSD

Price target:1.2300

Market price:1.2156

Background


This is “hero or zero” day as US nonfarm payrolls are due to be released at 1330 GMT. With Fed chair Janet Yellen noting that rate increases will be strongly data-dependent, a poor print today could send the USD spiralling. Never an easy task to predict the top but…

USD Index 

Monthly: We are long-term bears on the USD after stalling at the Fibonacci confluence area at 102.00. A bearish outside month was posted in January. Solid support seen at 92.50.

Source: Saxo Bank

Weekly: Volatile trading for the last four weeks with spikes seen in both directions. Levels above 102.00 continue to attract sellers. 

Source: Saxo Bank 

Daily: Looks to be forming a bearish head and shoulders pattern. Neckline support seen at 99.00. Yesterday’s price action posted a bearish outside day and offers a mild downward bias. 

Source: Saxo Bank

Intraday (six-hours): We are holding within an expanding wedge formation. Trading inside this pattern is normally mixed and volatile but it does have an eventual bias to break lower. Support seen at 100.95.

Source: Saxo Bank

We are playing a USD short position today (already short USDCHF from yesterday). We will highlight relevant chart patterns for USD majors as the session progresses.

Parameters (GBPUSD long trade)

Entry: long at 1.2166.

Stop: 1.2110.

Target: 1.2300.

Time horizon: today.

— Edited by Michael McKenna

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