Forex Price Action – More Upside for the USDINX? | Sept. 25th
Although the USD has enjoyed some gains for the last week or two, I am not really buying the overall correction. At least not yet. To be fair, the USD got hammered after topping mid-July at 84.00, especially in the first two weeks of September where it ended with some exhaustive selling. And though the bounce has shown some decent buying interest with two inverted pin bars, the overall price action structure appears corrective so I’m looking to sell.
I’ll consider selling just north of here at 80.00 which is the big figure and dynamic resistance on the daily chart. I’ll also consider selling just above at 80.17 which is a key role reversal level with tight stops above. The only thing which would make me both short and medium term bullish would be a move above 80.50. Until then, I’ll look to sell just below these levels.
Global Market Commentary:
US markets took it on the chin today as the S&P dropped the most in 2mos and the Dow lost over 101pts. Concerns over a Spanish bailout are ever so alive and protests in Spain are growing louder with over 50% of the youth unemployed. Don’t forget Greece which has over 1/3 of its Athens businesses closed.
The USD gained broadly across the majors with Gold and Crude selling off over a $1 each on the day.
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