Dollar With Another Upswing

President Donald Trump is the center of attention again. He makes sure that stock and forex traders will not forget about him even for a second. He called off the negotiations about the new fiscal stimulus package, which sent indices lower. In today’s analysis, we will focus on the American Dollar as we can currently see at least three very handsome trading occasions. The best thing is that we warned our clients about those setups in our yesterday’s Traders Edge video.

First let me show You the AUDUSD, where the price firmly bounced from the crucial long-term horizontal resistance. The bounce is a pure double top formation. What is more, the initial bullish correction, which led to that resistance was the flag, so this movement was meant to end with a drop from the very beginning. The sentiment on Aussie is definitely bearish.

A very similar occasion can be spotted on the GBPUSD, where the price also bounced from the crucial horizontal resistance. Here, the second test was at the same time a wedge and, as expected, the action ended with a breakout of the lower line of this pattern and a proper mid-term sell signal.

Last but not least is the USDJPY, where the price created a massive double bottom formation. Today, the price broke the long-term dynamic resistance, which can be considered as an ultimate buy signal. With today’s attack, the sentiment on USDJPY is definitely positive.

For a look at all of today’s economic events, check out our economic calendar.