In today’s live trading session, we went over the resurgence of the US Dollar and whether there were any setups we could take as a result. We then ended the session with a lesson on trading consolidation.
This morning the US Dollar Index (DXY) surged back to the upside as it used 92.10 as support. Now its a matter of understanding how much higher the DXY can go if any? We expect a probable push to 93.00, which should provide great intraday short opportunities for the majors. Both EURUSD and GBPUSD have pulled back sharply, but given the tendency for pairs to retrace further than usual, we aren’t convinced on shorts just yet.
The rest of the session, we did a lesson on how to trade consolidation. We explained this lesson by backtesting USDCAD and how it has handled moments of consolidation during this year. We taught our members a valueable lesson of staying put and waiting for price to react, instead of forcing a trade when the markets are not wanting to move.
The midweek volatility starts now and we have our trigger on a few trades already. We just want to make sure that we do as we preach. No point in rushing trades that aren’t quite ready yet. We knew this week would be this way, especailly with no major news until Friday. Let’s see what these next 72 hours have for us. As always, be safe and trade responsibly!
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